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22 July 2026

India-UK Comprehensive Economic and Trade Agreement (CETA)

The India-UK CETA is a significant bilateral trade agreement that directly impacts India's economic policy, export sectors, and strategic international relations, making it a highly relevant topic for UPSC Mains.

1 min read Day 10 of 14 2 questions 2 prelims

Notes

  • The India-U.K. Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, aiming to deepen cooperation across trade, technology, climate, and innovation.
  • Bilateral trade target: Doubling to over $100 billion by 2030.
  • Tariff benefits: Zero-duty access secured for 99% of Indian exports to the U.K., covering sectors like textiles, leather, footwear, marine products, gems and jewellery, engineering goods, and chemicals.
  • Steel and EVs: Arrangements made to protect commercial interests in steel; electric vehicles subject to phased tariff-rate quotas.
  • Safeguards: India retained protections in sensitive sectors like agriculture and dairy.
  • Services and Mobility: Expanded access for Indian IT, education, healthcare, financial, and professional services; provisions for U.K. institutions to establish campuses in India.
  • Investment: U.K. is India's sixth-largest investor (5% of cumulative FDI since April 2000).
  • Strategic alignment: Includes modern provisions on digital trade, labour, gender, intellectual property, and innovation.
  • Global context: CETA supports India's Atmanirbhar Bharat, Make in India, and Digital India initiatives while serving as a potential foundation for trilateral economic partnerships.

Part of a longer story

This is day 10 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. Discuss the significance of the India-U.K. Comprehensive Economic and Trade Agreement (CETA) in the context of India's export diversification and services sector growth. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. How do modern Free Trade Agreements (FTAs) like the India-U.K. CETA go beyond traditional tariff reduction to address contemporary challenges in global value chains, digital trade, and professional mobility? 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following best describes the scope of the India-U.K. Comprehensive Economic and Trade Agreement (CETA)?

  2. What is the stated target for bilateral trade between India and the U.K. by the year 2030 under the new institutional framework?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-22/india-uk-comprehensive-economic-and-trade-agreement-ceta