India-UK CETA and Vision 2035: Trade Deal Explained
Why in the news
India and the United Kingdom concluded a modern free trade agreement and agreed a long-term roadmap, marking a post-Brexit shift in ties across trade, technology, defence, climate and education.
Key facts about CETA
- A modern Free Trade Agreement covering goods, services, investments, mobility and social security.
- Zero duty on 99% of tariff lines, which together account for all of India’s export value to the UK.
- Beneficiaries: textiles, gems and jewellery, leather, marine products and processed food (tariffs cut from 70% to 0%).
- Dairy and other sensitive sectors stay protected via exclusion lists.
Provisions in brief
| Area | What changes |
|---|---|
| Services | Wider access in IT, finance, legal, education, consulting and architecture |
| Mobility | Easier visas for contractual service suppliers, intra-corporate transferees and independent professionals; qualifications in healthcare, engineering and similar regulated fields recognised both ways |
| Social security | Double Contribution Convention (DCC): no UK contributions for up to 3 years |
| Inclusive growth | Focus on MSMEs, women-led firms, artisans, farmers and youth; entry to the UK’s $63.4 billion farm market (tea, coffee, spices, fruit, meat); SME contact points, paperless trade, digital customs |
India-UK Vision 2035: five pillars
- Growth and jobs: double trade to $112 billion by 2030 (from $56 billion); reforms in legal, insurance, finance and asset management; infrastructure financing with BII.
- Technology and innovation: joint AI centre, 6G trials, biotech, Critical Minerals Guild, semiconductors, quantum and cybersecurity.
- Defence and security: a 10-year Defence Industrial Roadmap (electric propulsion, underwater systems, directed energy weapons), an elevated 2+2 dialogue, drills and counter-terror frameworks.
- Climate and clean energy: green hydrogen, offshore wind, SMRs, climate finance, the India-UK Forest Partnership and a Net Zero Innovation Partnership.
- Education and people ties: UK university campuses in India, dual degrees, the Young Professionals Scheme and a Green Skills Partnership.
Significance for India
- Faster export growth and MSME expansion; jobs in textiles, food processing, engineering and IT.
- Recognition of Indian professionals abroad; co-development in advanced defence technology.
- Shared position on reforming the UN, WTO and IMF.
Exam angle
- Full form: CETA – Comprehensive Economic and Trade Agreement.
- Trade target: $112 billion by 2030.
- Terms: DCC, Vision 2035, Critical Minerals Guild.