Lok Sabha Question No. 1394 (UNSTARRED), answered on 2025-07-29
Subject: Free Trade Agreement between India and UK
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Dhairyasheel Sambhajirao Mane, Shri Sudheer Gupta, Shri Manish Jaiswal, Shri Chavan Ravindra Vasantrao

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 1394

ANSWERED ON 29.07.2025

## FREE TRADE AGREEMENT BETWEEN INDIA AND UK

1394.  SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI MANISH JAISWAL:

SHRI CHAVAN RAVINDRA VASANTRAO:

SHRI SUDHEER GUPTA:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य और उद्योग मंत्री )be pleased to state :-

- (a) whether bilateral free trade agreement being signed between Government of India and Government of UK has reached its final stages/concluded, if so, the details thereof;
- (b) the salient features of the said bilateral trade agreement and the time frame by which it is likely to be implemented;
- (c) the manner in which the said trade deal will be beneficial to the traders of the country and will open export opportunities for domestic traders;
- (d) the sectors that are most likely to be benefited in the country by the said bilateral trade deal; and
- (e) the total bilateral trade value likely to be increased in terms of revenue between two countries in the upcoming three years?

## ANSWER

वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a)  to  (b):  The  Prime  Ministers  of  India  and  UK  had  announced  the  successful conclusion of India-UK FTA negotiations on 6 th  May, 2025. The trade deal, which has been named as Comprehensive Trade and Economic Agreement (CETA), has been signed on 24 th  July, 2025. The CETA with the UK is a modern, comprehensive and landmark agreement, which seeks to achieve deep economic integration along with trade liberalisation and tariff concessions. The CETA ensures comprehensive market access for goods, across all sectors, covering all of India's export interests. The CETA seeks to promote good regulatory practices and enhance transparency that are in sync with India's own focus on domestic reforms to enhance the ease of doing business. The CETA comes into force after ratification by both the countries.

(c) to (e): CETA provides an unprecedented duty-free access to almost 99 per cent of India's  exports to  the  UK,  covering  nearly  100%  of  the  trade  value.  This  includes labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys as well as high-growth sectors like engineering goods, chemicals, and auto components  etc.  This  will  spur  large-scale  employment  generation,  empowering artisans, women-led enterprises, and MSMEs. The services sector, a strong driver of India's economy, will also see wide-ranging benefits. The agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and  educational  services,  and  digital  trade.  Indian  professionals,  including  those deployed  by  companies  to  work  in  UK  across  all  service  sectors,  professionals deployed  on  contracts  such  as  architects,  engineers,  chefs,  yoga  instructors,  and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier to work in the UK. India has also secured an agreement on the Double Contributions Convention. This will exempt Indian professionals and their employers from  social  security  payments  in  the  UK  for  up  to  three  years,  improving  the  cost competitiveness of Indian companies. The agreement has been designed to make trade more inclusive. Women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs will gain new access to global value chains, supported by provisions that encourage innovation, promote sustainable practices, and reduce non-tariff barriers. CETA is expected to boost trade volumes significantly in the coming years, creating jobs, expanding exports, and supporting a deeper, more resilient economic relationship between India and the United Kingdom. The bilateral trade between the two countries stand at nearly USD 56 billion, with a goal to double this figure by 2030. The  press  note issued by the Department  in  this regard  may  be  seen  at https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154945&ModuleId=3.

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