India and UK's Landmark CETA: A New Era in Trade Relations

In a significant move to strengthen economic ties, India and the UK have signed the Comprehensive Economic and Trade Agreement (CETA), marking India's 16th such pact. This agreement is set to significantly boost bilateral trade and investments between the two nations.

The new trade deal aims to eliminate taxes on the export of India's labor-intensive goods like leather, footwear, and textiles while reducing import duties on British whisky and cars. These changes are expected to double trade between the two countries from the current USD 56 billion by 2030.

India's strategic shift towards high-quality FTAs enhances domestic manufacturing and service exports, reflecting its commitment to integrating into resilient global value chains. The CETA with the UK exemplifies this strategy, offering duty-free access for key Indian sectors and securing market access in traditionally tariff-protected areas.

(With inputs from agencies.)