Daily
250 words
8/10
Rating

29 June 2026

India-UK Free Trade Agreement

The India-UK FTA is a major bilateral trade agreement that directly impacts India's economic policy, trade relations, and sectoral growth, making it a high-probability topic for direct questions in GS2 and GS3.

1 min read Day 3 of 14 2 questions 1 prelims

Notes

  • The India-UK Free Trade Agreement (FTA), formally known as the Comprehensive Economic and Trade Agreement (CETA), aims to boost bilateral trade and economic growth.
  • Economic projections: The FTA is expected to increase India's GDP by £5.1 billion, the UK's GDP by £4.8 billion, and bilateral trade by £25.5 billion annually in the long run.
  • Tariff liberalization: 99% of UK tariff lines will be duty-free for Indian products; India will remove or reduce tariffs on 90% of its tariff lines for UK products.
  • Sectoral benefits: India gains in labour-intensive sectors (textiles, leather, jewellery) and services (IT, finance). The UK gains in aerospace, automotives, medical devices, and whiskies.
  • Trade facilitation: The agreement includes 30 chapters covering customs, digital trade, and services to reduce red tape for SMEs.
  • Value-based commitments: The deal contains standalone chapters on anti-corruption, gender, and development, alongside comprehensive labour and environmental commitments.
  • Domestic protections: India retains protections for dairy and edible oils; the UK retains protections for sugar, milled rice, pork, chicken, and eggs.

Part of a longer story

This is day 3 of 14 in India-UK Comprehensive Economic and Trade Agreement (CETA) implementation, which has been running since 21 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the significance of the Comprehensive Economic and Trade Agreement (CETA) in deepening the economic partnership between India and the United Kingdom. How does it address the concerns of small and medium-sized enterprises (SMEs)? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Modern Free Trade Agreements (FTAs) are increasingly incorporating non-trade issues such as gender, anti-corruption, and environmental standards. Discuss the implications of these 'values-based' chapters in the context of the India-UK trade agreement for India's domestic policy and international trade strategy. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following best describes the tariff liberalization commitment under the India-UK Comprehensive Economic and Trade Agreement (CETA)?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-06-29/india-uk-free-trade-agreement