**Executive Summary**
This document is a response to Unstarred Question No. 2575 answered on December 16, 2025, in Lok Sabha, concerning Foreign Trade Agreements and Rupee Trade. It provides updates on the status of FTAs with the UK and EU, initiatives to promote Rupee trade, strategies for service export growth, and progress on the Trade Connect e-Platform. Key action items include sustaining the momentum of FTA negotiations and exporters utilizing the Trade Connect ePlatform for tariff information.
**Key Points / Main Content**
* **India-UK Comprehensive Trade and Economic Agreement (CETA):**
* Signed on July 24, 2025, the agreement facilitates market access in IT/ITES, business services, professional services, education, and healthcare.
* Creates a structured framework for temporary movement of service providers, including business visitors, contractual service suppliers, and independent professionals.
* Includes a Double Contribution Convention to avoid double payment of social security contributions.
* Allows up to 1,800 Indian chefs, yoga instructors, and classical musicians to work in the UK annually.
* **India-EU Free Trade Agreement (FTA) Negotiations:**
* Fourteen rounds of negotiations concluded by October 2025.
* Meetings held in December 2025 indicated steady progress and a commitment to sustain the momentum.
* **Rupee Trade Promotion:**
* Additional arrangement for invoicing, payment, and settlement of exports/imports in Indian Rupees (INR) was put in place on July 11, 2022.
* Authorized Dealer banks are now allowed to open Special Rupee Vostro Accounts (SRVAs) of overseas correspondent banks without referring to the Reserve Bank for approval (August 05, 2025).
* SRVA balances can be invested in non-convertible debentures/bonds and commercial papers issued by an Indian company (October 03, 2025).
* **Services Export Growth Strategies:**
* The National Geospatial Policy (NGP) 2022 aims to grow Geospatial services and build a globally competitive Geospatial ecosystem.
* Milestones laid out to 2025 and 2030 for establishing foundational infrastructure, data frameworks, and institutional mechanisms.
* Government is supporting growth in Animation, Visual Effects, Gaming, and Comics (AVGC) Services exports.
* World Audio Visual & Entertainment Summit (WAVES) 2025 was held in May 2025 to expand high-quality production capacity, develop talent and improve access to international markets.
* **Trade Connect ePlatform:**
* Tariff Explorer service provides information on tariff concessions under FTAs and PTAs.
* Provides details on Rules of Origin.
* Information is searchable by Harmonised System (HS) code or product description.
* Updates are undertaken as and when new information is received from authorized sources.
**Impact Analysis**
**Indian Service Providers (IT/ITES, Business, Professional, Education, Healthcare)**
* **Impact:** Increased market access and favorable trading conditions in the UK.
* **Action Required:** Understand and utilize the provisions of the India-UK CETA to expand operations in the UK.
**Indian Exporters**
* **Impact:** Benefit from tariff concessions and streamlined access to trade information.
* **Action Required:** Utilize the Trade Connect ePlatform to access real-time data on tariff concessions and Rules of Origin under FTAs.
**Indian Chefs, Yoga Instructors, and Classical Musicians**
* **Impact:** Opportunity to work in the UK.
* **Action Required:** Explore opportunities to work in the UK under the provisions of the India-UK CETA.
**Authorized Dealer Banks**
* **Impact:** Greater autonomy in opening and managing Special Rupee Vostro Accounts (SRVAs).
* **Action Required:** Utilize the updated guidelines for opening SRVAs and investing SRVA balances.
**Geospatial Service Providers**
* **Impact:** Supported by the National Geospatial Policy (NGP) 2022 to build a globally competitive Geospatial ecosystem
* **Action Required:** Understand the policy to expand Geospatial services and their export potential.
Key Entities Referenced
Free Trade Agreements (FTAs): Agreements to enhance India's services exports and promote trade with other countries.
Comprehensive Trade and Economic Agreement (CETA): Trade agreement between India and the United Kingdom.
International Trade Settlement in Indian Rupees: Mechanism promoted by the government and RBI to facilitate trade in Indian Rupees.
National Geospatial Policy (NGP), 2022: Policy that aims to build a globally competitive Geospatial ecosystem and grow Geospatial services and their contribution to India's overall digital services exports.
Trade Connect e-Platform: Platform to provide exporters with real-time data on tariff concessions and Rules of Origin under various FTAs.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 2575
ANSWERED ON 16/12/2025
FOREIGN TRADE AGREEMENTS AND RUPEE TRADE
2575. SHRI KRISHNA PRASAD TENNETI:
SHRI MANOJ TIWARI:
DR. HEMANG JOSHI:
DR. K SUDHAKAR:
SHRI BALABHADRA MAJHI:
Will the Minister of COMMERCE & INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be
pleased to state:
(a) the current status and timeline for concluding FTAs with the UK and EU and
the manner these agreements will enhance India’s services exports;
(b) the manner the Government is promoting and tracking the Rupee trade
settlement mechanism with the RBI and the steps being taken to encourage
more partner countries to open SRVAs;
(c) the strategies being used to grow services exports in sectors like FinTech,
Geospatial services, and AVGC and the targets for 2026; and
(d) the progress made in using the Trade Connect e-Platform to provide
exporters with real-time data on tariff concessions and Rules of Origin under
various FTAs?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) India and United Kingdom (UK) have signed the Comprehensive Trade and
Economic Agreement (CETA) on 24th July, 2025. After entry into force, the India-UK
CETA will provide predictable, open and favourable market access across wide range
of services sectors such as IT/ITES, business services, professional services,
education, and healthcare. It also creates a structured framework for the temporary
movement of service providers. Business visitors, contractual service suppliers, and
independent professionals will be able to access the UK under clear and predictable
temporary entry and stay rules. The Double Contribution Convention which will enter
into force along with the FTA will provide a mechanism to avoid double payment of
social security contributions. Additionally, up to 1,800 Indian chefs, yoga instructors,
and classical musicians will be able to work in the UK every year under these
provisions. After formal relaunch of India-EU Free Trade Agreement (FTA)
negotiations in June 2022, fourteen rounds of negotiations have been concluded by
October 2025. In the meetings held at various levels from 3-9 December 2025, both
sides took note of the steady progress achieved across various negotiating tracks,
including Services and agreed to sustain the momentum.
1(b) To promote growth of global trade with emphasis on exports from India and to
support the increasing interest of global trading community in Indian Rupees (INR), an
additional arrangement for invoicing, payment, and settlement of exports / imports in
INR was put in place vide Authorised Persons (Directions / Dealer Information/
Reporting) Series (A.P. (DIR Series)) Circular No. 10 dated July 11, 2022, on
International Trade Settlement in Indian Rupees. Additionally, in terms Reserve Bank
of India’s A.P. (DIR Series) Circular No. 08 dated August 05, 2025, Authorized Dealer
banks are now allowed to open Special Rupee Vostro Accounts (SRVAs) of overseas
correspondent banks without referring to the Reserve Bank for approval. Further, in
terms of A.P. (DIR Series) Circular No. 14 dated October 03, 2025, on International
Trade Settlement in Indian Rupees (INR), SRVA balances can now also be invested
in non-convertible debentures/bonds and commercial papers issued by an Indian
company.
(c) Services exports including financial services is a key component in bilateral
engagements and FTAs. The National Geospatial Policy (NGP), 2022 envisages the
growth of Geospatial services, including their contribution to India’s overall digital
services exports. The Policy aims to build a globally competitive Geospatial ecosystem
through an enabling framework for innovation, improved data availability, private-
sector participation, and capacity development. As per the NGP 2022, there are
milestones laid out up to 2025 and 2030 for establishing the foundational
infrastructure, data frameworks, and institutional mechanisms required for expanding
Geospatial services and their export potential. Further, government is taking several
steps for growth in Animation, Visual Effects, Gaming, and Comics (AVGC) Services
exports. The AVGC Promotion Task Force was set up by the Ministry of Information
and Broadcasting in April 2022 after the Union Budget announcement. It brought
together industry and government to outline how India could scale skills, jobs and
investment in animation, VFX, gaming and comics; and position the country as a global
hub. The Task Force submitted its report in December 2022, recommending a National
AVGC Mission, Centres of Excellence, stronger infrastructure and dedicated support
for Indian Intellectual Property and exports. Indian Institute of Creative Technologies
(IICT) Mumbai has been established and is being developed as a specialized Centre
of Excellence to strengthen high-end training and research. With a focus on expanding
high-quality production capacity, developing talent and improving access to
international markets, World Audio Visual & Entertainment Summit (WAVES) 2025
was held in May 2025 as a global platform for the entire Media & Entertainment sector.
(d) Tariff Explorer service on Trade Connect ePlatform provides information on tariff
concessions available to eligible Indian exports under various Free Trade Agreements
(FTAs) and Preferential Trade Agreements (PTAs). It also provides details on Rules
of Origin to be complied with, in order to access the said tariff concessions. The
information is available on a searchable basis with exporters having option of
searching by the Harmonised System (HS) code assigned to the product by the
destination country or by product description. The exporters may select the nearest
matches to their products based on the search and understand the tariff and rules of
origin information. Updates to the repository are undertaken as and when new
information is received from authorised sources.
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