Historic India-UK Trade Agreement Signed

In a landmark move, the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom was signed in London, marking a new era of bilateral trade relations. This deal eliminates the need for British companies to establish a local base in India to offer services in telecom and construction, among others.

Key Highlights of the Deal

The agreement ensures national treatment for British service providers, placing them on par with Indian companies. The UK has granted access in 137 service sub-sectors, with India reciprocating in 108, covering areas like financial services, telecom, and environmental services.

Impact on Trade and Industries

India, currently enjoying a trade surplus of $6.6 billion with the UK, sees this agreement as a gateway to deeper engagement with the developed world. The deal is expected to benefit labor-intensive sectors such as textiles and jewelry, and includes a social security arrangement for Indian professionals in the UK.

Exclusions and Protections

Legal services remain outside the agreement's scope, and the automobile sector's opening has been carefully negotiated to protect India's interests. Commerce Minister Piyush Goyal emphasized the deal's balanced approach, safeguarding sensitive sectors while expanding access to foreign goods and services.