India and the United Kingdom have signed a major Free Trade Agreement (FTA) that promises to boost Indian exports and open new markets. Officially called the Comprehensive Economic and Trade Agreement (CETA), this deal aims to remove tariffs on a wide range of Indian goods. With this move, trade between the two countries is expected to grow from $56 billion to $120 billion by 2030.
Nearly All Indian Exports to Enter UK Duty-Free
One of the biggest takeaways from the agreement is that nearly 99% of Indian exports will now enter the UK without any duty. This includes products like leather goods, chemicals, electrical machinery, and textiles. Popular traditional items such as Kolhapuri chappals, Goa’s feni, Kerala’s toddy, basmati rice, jackfruit, and millets are also included.
The agriculture sector is expected to benefit in a big way. Over 95% of agri-products like turmeric, cereals, cardamom, spices, mango pulp, pickles, and ready-to-eat foods will now enjoy zero duty access to the UK market.
Support for Small Businesses and Women Entrepreneurs
This deal is a big win for small-scale producers and women-led businesses. Artisan groups, weavers, and family-run units will find it easier to reach global markets. For example, Kolhapuri chappals—handcrafted by women in Maharashtra—will now be sold in UK stores. This not only boosts income for local communities but also helps preserve India’s traditional crafts.
State-Wise Gains Across India
Many Indian states stand to gain from the deal.
- Maharashtra will see increased exports of grapes, onions, and leather goods.
- Gujarat can export more groundnuts and cotton.
- Punjab and Haryana will benefit from basmati rice exports.
- Kerala is expected to gain from exports of spices, toddy, and fruit-based products.
- Coastal states like Andhra Pradesh, Odisha, and Tamil Nadu will get access to the UK’s marine products market.
$23 Billion Opportunity for Labour-Intensive Sectors
Commerce Minister Piyush Goyal said the FTA could unlock $23 billion worth of opportunities for labour-intensive industries. These include footwear, clothing, textiles, and heritage crafts. The removal of trade barriers will help small businesses join global supply chains, access funding, and grow faster.
A Post-Brexit Win for Both Countries
This FTA is one of the most important trade deals the UK has signed since Brexit. For India, it represents a key moment to expand its reach in global markets. It also highlights India’s strength in both traditional industries and modern sectors.
