India-UK Comprehensive Economic Trade Agreement (CETA)

India and the UK have signed a Comprehensive Economic Trade Agreement (CETA), focusing on balancing sensitivities and strengths while transitioning India towards a more mature economy.

Key Features and Protections

• Only about 25% of the UK's exports by value will enjoy immediate duty-free access to India.
• India has protected sensitive sectors such as: 
  • Dairy, cereals, millets, pulses, and vegetables
  • High-value items like gold, jewellery, and lab-grown diamonds
  • Essential oils, critical energy fuels, marine vessels, and worn clothing
  • Critical polymers, monofilaments, smartphones, and optical fibres
• Strategically important products will receive concessions over five, seven, and ten-year periods.

Strategic Considerations

• The agreement reflects a shift towards India entering areas not previously covered in other trade deals, supporting its transition to developed country status.
• India aims to shed the "tariff king" label by ensuring mutual benefits and predictability for businesses.

Mutual Recognition and Market Access

• India and the UK will negotiate mutual recognition agreements (MRAs) to facilitate the movement of professionals such as nurses, accountants, and architects to Britain.
• Non-tariff barriers will be eased, and regulatory systems improved.

The CETA is a comprehensive deal intended to support India's export capacity and ensure mutual benefits, while safeguarding sensitive domestic industries.