New Delhi, Oct 16 (IANS) Three months after the India‑UK Comprehensive Economic and Trade Agreement (CETA) entered into force, the pact is already reshaping commercial ties and could deliver substantial long‑term gains for their economies, a new report has said.
A high-level British trade mission of over 100–200 companies, three cabinet ministers, and seven northern English mayors arrived in India within three months of agreement entering force, proving that the deal is already reshaping commercial realities, the report from India Narrative said.
Official UK modelling projects a long‑run annual boost to bilateral trade of 25.5 billion pounds and GDP gains of 4.8 billion pounds for the UK and 5.1 billion pounds for India, while real wages in the UK are expected to rise by nearly $2.9 billion due to the effect of the pact, the publication said.
CETA offers the United Kingdom a growth anchor outside the European Union and preferential access to one of the world’s fastest-expanding large economies. Further, the UK gains a platform for services, finance, and high-value manufacturing.
India gains immediate export competitiveness in labour-intensive goods, deeper services integration, professional mobility relief, and a template for ambitious FTAs with other advanced economies.
The deal’s early commercial impact was visible on the first day of implementation, when Indian exporters shipped over 50 consignments worth about $140 million under zero‑duty terms. In August, bilateral goods trade rose nearly 15 per cent year‑on‑year to nearly $2 billion, with Indian exports up about 10 per cent and UK imports into India rising faster by 24 per cent.
"Tariff-free Scottish salmon arrived within a fortnight; Scotch whisky began clearing at the new reduced rate; and the first cars under the automotive tariff-rate quota entered India," the report noted.
The report cited Bank of Baroda estimates that Indian goods exports to the UK could rise from nearly $13.5–14 billion toward $24 billion by FY31 at a 12.5 per cent CAGR, against a $900 billion UK import market.
Implemented on July 15, 2026, the deal is the most comprehensive trade agreement India has ever concluded and the United Kingdom’s largest bilateral pact since Brexit.
The agreement eliminates duties on 96.8 per cent of tariff lines from day one and phases out further tariffs over time, immediately benefiting sectors such as textiles, leather, footwear, gems and jewellery, and processed foods.
India has also opened up services and procurement markets, including a central‑government procurement market estimated at nearly 38 billion pounds a year.
--IANS
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