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The Economic Times
The Economic Times
Vikramjit S Sahney

India-UK CETA is more than a trade deal—it is a blueprint for a strategic partnership

The India-Britain Comprehensive Economic and Trade Agreement (CETA), together with the Agreement on Social Security a.k.a. Double Contribution Convention (DCC), formally enters into force on July 15. It will activate one of the most comprehensive and ambitious economic and trade architectures either country has negotiated in recent memory. Yet, its true foundation probably lies elsewhere.

India-Britain ties are held together not just by trade and diplomacy, but by nearly 2 million British Indians, among the country’s largest ethnic minority, and a cultural affinity shaped by generations of shared life. This ‘living bridge’ is the bedrock on which the CETA signed on July 24, 2025, rests.

Union commerce and industry minister Piyush Goyal’s recent visit to Britain for the India Global Forum and high-level bilateral engagements ahead of CETA’s implementation signals that the relationship has moved decisively from the negotiating table to the ground. The architecture is in place. Work of building it now begins.

Nearly a year on, CETA is not merely a trade deal, but a paradigm shift in India’s trade architecture. Spanning multiple sectors, it aims to double bilateral trade from $56 bn to $112 bn by 2030. What genuinely distinguishes from other agreements of its kind is that it marks India’s entry into a rules-based framework for the intangible economy. Beyond duty-free access for 99% of India’s exports, it ushers, perhaps for the first time, enforceable governance norms across digital trade, IP, and services in India’s trade architecture.

Through the Britain-India Technology Security Initiative (TSI), codified in Vision 2035 and endorsed alongside CETA, both nations have committed to co-development across AI, quantum computing, semiconductors, 6G, and critical minerals. Financial services and fintech gain a stronger collaborative framework, while streamlined business mobility provisions enable the free-flowing movement of the professionals who will actually collaborate in these high-value sectors.

Indian firms are no longer merely contractors, but strategic partners and co-creators in what is increasingly a shared innovation ecosystem. On defence, India-UK Vision 2035 commits to the adoption of a 10-year industrial roadmap covering joint R&D in electric propulsion, co-development of next-gen technologies like directed energy weapons, and maritime security systems.

On clean energy, the agreement unlocks cooperation on offshore wind, green hydrogen, battery storage, and small modular reactors (SMRs), with Indian EVs gaining zero-tariff British access from Year 6 of the deal. On agriculture and food security, over 95% of agri tariff lines will attract zero duty, and the Indian commerce ministry projects a 20% rise in agri exports within three years, spanning millets, marine products, and processed foods. Supply-chain alignment on critical minerals completes this broad strategic canvas.

In today’s uncertain geopolitical environment, where critical trade arteries can close with little warning, diversified and rules-bound partnerships like the India-Britain CETA are not diplomatic niceties but strategic insurance.

So, this CETA is also the first chapter of a larger developing story. Six months after its signing, India concluded the India-EU FTA in January 2026, which European Commission president Ursula von der Leyen hailed as the ‘mother of all deals,’ a free trade zone of 2 bn people representing 25% of global GDP. The India-Britain CETA provided India with just the right template and regulatory credibility to negotiate as an equal.

India’s foreign policy approach of multi-alignment is now a settled doctrine. Within that framework, Britain is a partner sharing language, legal tradition, democratic institutions and an irreplaceable human bond. The CETA future-proofs this partnership for an era of accelerating competition.

The writer is MP, Rajya Sabha

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