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.
