Lok Sabha Question No. 4214 (UNSTARRED), answered on 2025-08-19
Subject: Status of Free Trade Agreements with the United Kingdom
Ministry: COMMERCE AND INDUSTRY
Asked by: Ms. Praniti Sushilkumar Shinde

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

## LOK SABHA UNSTARRED QUESTION NO. 4214 ANSWERED ON 19/08/2025

## STATUS OF FREE TRADE AGREEMENTS WITH THE UNITED KINGDOM

## 4214.  MS. PRANITI SUSHILKUMAR SHINDE

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

- (a) the current status of the Free Trade Agreement (FTA) between India and the United Kingdom;
- (b) the major sectors likely to benefit under the India-UK FTA and the expected impact on bilateral trade;
- (c) the  present  status  of  ongoing  FTA  or  Comprehensive  Economic  Partnership Agreement (CEPA) negotiations with other countries or regional blocks; and
- (d) the steps being taken by the Government to ensure that FTAs serve India's economic and strategic interests while protecting domestic industries?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद

## )

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) & (b): The Prime Ministers of India and UK had announced the successful conclusion of India-UK FTA negotiations on 6th May, 2025. The trade deal, which has been named as Comprehensive Trade and Economic Agreement (CETA), has been signed on 24th July, 2025. 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 agricultural and processed food sector, 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.

## (c): India is currently engaged in FTA negotiations with the following trading partners:

|   S. No. | Name of the Agreement                                                                      |
|----------|--------------------------------------------------------------------------------------------|
|        1 | India-Oman Comprehensive Economic Partnership Agreement (Negotiations have been concluded) |
|        2 | India - Australia Comprehensive Economic Cooperation Agreement (Expansion of Ind-Aus ECTA) |
|        3 | India-European Union Free Trade Agreement                                                  |
|        4 | India-Sri Lanka Economic and Technology Cooperation Agreement                              |
|        5 | India - Peru Free Trade Agreement                                                          |
|        6 | India-Chile Comprehensive Economic Partnership Agreement                                   |
|        7 | India and New Zealand Free Trade Agreement                                                 |
|        8 | India and USA Bilateral Trade Agreement (BTA)                                              |
|        9 | ASEAN-India Trade in Goods Agreement (AITIGA) (Review)                                     |
|       10 | India-Korea CEPA (Review)                                                                  |

(d):  The  Department  of  Commerce  engages  in  negotiations  and  reviews  of  trade agreements on an ongoing basis. Before entering into new FTA negotiations, a Joint Study Group is set up to study the feasibility of the proposed FTAs, including their impact on the domestic industry. The government ensures that wide stakeholder consultations are held at all  stages  of  the  negotiations.  This  includes  the  pre-negotiation  phase,  each  round  of negotiations, and the post-conclusion phase, during the implementation of the agreements.

Through these sector-specific consultations, domestic sensitivities and interests of farmers, MSMEs,  etc.  are  carefully  considered  during  the  negotiations.  The  aim  of  FTAs  is  to generate  benefits  for  industry,  farmers,  MSMEs  and  create  job  opportunities.  FTAs  are negotiated  with  the  endeavour  to  deliver  a  comprehensive,  balanced,  broad-based  and equitable agreement based on the principle of fairness and reciprocity. It also ensures a level  playing  field  for  Indian  exporters  vis-à-vis  their  competitors  in  the  trading  partner countries.

In  addition  to  this  structured  approach,  post-implementation,  the  Department  of Commerce is continuously engaged with all stakeholders, including industry, to advance trade through trade promotion, trade facilitation and remedial measures for elevating trade and economic growth.

To  protect  the  interests  of  the  domestic  industry,  FTAs  provide  for  maintaining sensitive, negative or exclusion lists of items on which limited or no tariff concessions are granted. In addition, in case of surge in imports and injury to the domestic industry, a country is  allowed  to  take  recourse  to  trade  remedial  measures  such  as  anti-dumping  and safeguards on imports within the period as mutually agreed to by the parties under the FTAs. The  FTAs  include provisions on Technical Barriers to  Trade to promote  mutual understanding of each sides' standards, technical regulations, and measures to enhance transparency.

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