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India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) in July 2025, marking a landmark Free Trade Agreement (FTA) between India and a major developed economy. The agreement is part of the broader India–UK Vision 2035, aiming to strengthen bilateral ties across trade, technology, defence, climate, and education.

Key Features of CETA

1. Trade in Goods

• Zero-duty access for 99% of Indian exports to the UK, covering major sectors:
  • Labour-intensive: textiles, leather, footwear, gems & jewellery, toys, marine products.
  • High-growth: auto components, engineering goods, organic chemicals.
• Improved access for Indian agricultural products (tea, spices, coffee, fruits, meats) to UK’s $63.4 billion agri-market (dairy excluded).

2. Trade in Services

• First-of-its-kind comprehensive services commitment by the UK.
• Expands Indian access in: IT/ITeS, financial & legal services, architecture, education, telecom, consulting, and engineering.

3. Labour Mobility

• Liberalised visa norms for:
  • Contractual Service Suppliers
  • Intra-Corporate Transferees
  • Independent Professionals (e.g. chefs, yoga instructors, musicians)
• Double Contribution Convention (DCC):
  • Exempts Indian professionals and their employers from UK social security contributions for up to 3 years.

4. Inclusive Growth

• Benefits designed for MSMEs, women entrepreneurs, artisans, farmers, and startups.
• Provisions include:
  • Dedicated SME contact points
  • Digital trade facilitation
  • Paperless customs

India–UK Vision 2035: 5 Strategic Pillars

1. Growth and Jobs

• Target: Double bilateral trade from USD 56 bn to USD 112 bn by 2030.
• Initiatives:
  • New Bilateral Investment Treaty (BIT)
  • UK–India Infrastructure Financing Bridge
  • British International Investment (BII)
  • Regulatory harmonisation in legal and financial services.

2. Technology and Innovation

• Focus Areas: AI, 6G, semiconductors, biotech, cybersecurity, biomaterials.
• Key Initiatives:
  • Joint AI research centre
  • India–UK Critical Minerals Guild
  • Startup collaboration via incubators and biofoundries.

3. Defence and Security

• Launch of 10-Year Defence Industrial Roadmap: R&D in electric propulsion, underwater warfare, directed energy weapons.
• Deepening:
  • 2+2 Ministerial Dialogue
  • Military exercises, intelligence sharing
  • Indian Ocean logistics cooperation

4. Climate and Clean Energy

• Areas of Collaboration: Offshore wind, small modular nuclear reactors (SMRs), carbon markets, blue carbon research.
• Joint commitment to:
  • International Solar Alliance (ISA)
  • One Sun One World One Grid (OSOWOG)
  • Net Zero Innovation Partnership

5. Education and People-to-People Ties

• UK universities allowed to open campuses in India.
• Launch of dual degree programmes, mutual qualification recognition.
• Young Professionals Scheme for career mobility.
• Green Skills Partnership to bridge climate tech skill gaps.

Strategic Importance for India