**Summary:**
On July 24, 2025, India and the UK signed the Comprehensive Trade and Economic Agreement (CETA), marking the culmination of negotiations announced on May 6, 2025, by the Prime Ministers of both nations. CETA grants duty-free access to approximately 99% of India's exports to the UK, encompassing almost 100% of the trade value. Key beneficiary sectors include labor-intensive industries like textiles, leather, marine products, gems and jewellery and toys, alongside high-growth sectors such as engineering goods, chemicals, and auto components.
The agreement extends significant advantages to India's services sector, particularly in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade. CETA introduces simplified visa procedures and liberalized entry categories for Indian professionals working in the UK, including those deployed by companies and individuals on contract (e.g., architects, engineers, chefs). A Double Contributions Convention agreement exempts Indian professionals and their employers from UK social security payments for up to three years.
CETA aims to foster inclusive trade, providing enhanced access to global value chains for women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs. The agreement incorporates provisions to encourage innovation, promote sustainable practices, and reduce non-tariff barriers. India has opened 89.5% of its tariff lines while safeguarding sensitive sectors like dairy, cereals, and certain essential oils. A dedicated chapter on Innovation seeks to bolster collaboration on innovation, support innovative processes and trade in innovative products, and promote economic growth. Additional details are available in the press note issued by the Department.
Key Entities Referenced
India-UK FTA: A free trade agreement between India and the United Kingdom.
Comprehensive Trade and Economic Agreement (CETA): The name given to the India-UK free trade agreement.
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and commerce.
Jitin Prasada: Minister of State in the Ministry of Commerce and Industry.
United Kingdom (UK): A country in Europe that is negotiating a trade agreement with India.
MSMEs: Micro, Small and Medium Enterprises, which are expected to benefit from the trade agreement.
Double Contributions Convention: An agreement that exempts Indian professionals and their employers from social security payments in the UK for up to three years.
DR. MALLU RAVI: Member of LOK SABHA who raised the question regarding India-UK FTA negotiations
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 2692
ANSWERED ON 05/08/2025
INDIA-UK FTA NEGOTIATIONS
2692. DR. MALLU RAVI:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to
state:
(a) the current status of the India–UK FTA talks;
(b) the measures to ensure complementarity; and
(c) the expected innovation-sector investments?
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) to (c) The Prime Ministers of India and UK had announced the successful conclusion of
India-UK FTA negotiations on 6th May, 2025. The trade deal, which has been named as
Comprehensive Trade and Economic Agreement (CETA), has been signed on 24th July,
2025. CETA provides an unprecedented duty-free access to almost 99 per cent of India’s
exports to the UK, covering nearly 100% of the trade value. This includes labour-intensive
sectors such as textiles, leather, marine products, gems and jewellery, and toys as well as
high-growth sectors like engineering goods, chemicals, and auto components etc. This will
spur large-scale employment generation, empowering artisans, women-led enterprises, and
MSMEs. The services sector, a strong driver of India’s economy, will also see wide-ranging
benefits. The agreement provides greater market access in IT and IT-enabled services,
financial and legal services, professional and educational services, and digital trade. Indian
professionals, including those deployed by companies to work in UK across all service
sectors, professionals deployed on contracts such as architects, engineers, chefs, yoga
instructors, and musicians, will benefit from simplified visa procedures and liberalised entry
categories, making it easier to work in the UK. India has also secured an agreement on the
Double Contributions Convention. This will exempt Indian professionals and their employers
from social security payments in the UK for up to three years. The agreement has been
designed to make trade more inclusive. Women and youth entrepreneurs, farmers,
fishermen, startups, and MSMEs will gain new access to global value chains, supported by
provisions that encourage innovation, promote sustainable practices, and reduce non-tariff
barriers. The press note issued by the Department in this regard may be seen at
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154945&ModuleId=3. India has
opened 89.5% of its tariff lines, while safeguarding sensitive sectors like dairy, cereals, and
certain essential oils. The CETA has a dedicated chapter on Innovation, objective of which
is to support innovative processes and trade in innovative products, as well as economic
growth between the Parties, by further enhancing collaboration on innovation.
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