July opens the biggest chapter in India-U.K. trade relations
The article highlights the significance of the India-U.K. Free Trade Agreement (FTA), formally known as the Comprehensive Economic and Trade Agreement (CETA), which is set to come into force from July 15. It emphasizes the deal's potential to accelerate shared growth, unlock opportunities for businesses, and boost bilateral trade. Forecasts suggest a significant increase in GDP for both India (£5.1 billion) and the U.K. (£4.8 billion), and a rise in bilateral trade by £25.5 billion annually. The FTA will make trade cheaper and quicker by reducing or removing tariffs on 99% of U.K. tariff lines for Indian products and 90% of Indian tariff lines for U.K. products. It is expected to benefit labour-intensive sectors in India (textiles, leather, jewellery, IT, finance) and critical industries in the U.K. (aerospace, automotives, medical devices, whiskies). Beyond tariffs, the agreement includes provisions on customs, digital trade, services, and unprecedented chapters on anti-corruption, gender, development, and comprehensive labour and environmental commitments, while also maintaining protections for sensitive domestic sectors in both countries.
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