London [UK], July 24 (ANI): Union Commerce Minister Piyush Goyal on Thursday described the Free Trade Agreement (FTA) between India and the United Kingdom as “fantastic,” stating that the deal has unlocked numerous opportunities for India while safeguarding all of its interests.
Goyal emphasized that the agreement excludes sensitive sectors such as dairy, rice, and sugar—vital for farmers and Micro, Small, and Medium Enterprises (MSMEs)—to ensure their protection.
“A fantastic FTA has been signed between India and the UK today under the leadership and guidance of Prime Minister Modi. Through this FTA, India has opened avenues to several opportunities while safeguarding all its interests. Every sector that remains sensitive for India, including our farmers and MSMEs, such as dairy, rice, and sugar, has not been opened. All these sectors have been safeguarded,” Goyal told ANI.
He highlighted that labor-intensive sectors like textiles, footwear, leather, toys, furniture, and pharmaceuticals will now have expanded access to the UK market, creating significant opportunities for Indian workers, farmers, and women.
Goyal also noted a key provision benefiting Indian professionals working in the UK on short-term assignments. “People from India who come to the UK to work for a short duration suffered around 25 percent losses earlier—they did not receive any benefit or pension for social security payments. Now, they will be able to deposit that money in their PF accounts in India. This money will be their savings and will no longer go to waste,” he added.
He further explained that the Indian Cabinet had already approved the agreement, while the UK’s Parliament will now take it up for ratification. “It will take a few months, but with this certainty, industries and businesses can begin planning, readying their supply chains, and working on approvals and ordering. Due to bipartisan support on both sides, I believe it will be approved and implemented soon,” Goyal said.
India and the United Kingdom took a major step in strengthening their economic partnership with the signing of the Comprehensive Economic and Trade Agreement (CETA) under the leadership of Prime Minister Narendra Modi. The agreement was signed by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of both prime ministers.
This FTA represents a milestone in India’s engagement with major developed economies and reflects the countries’ shared commitment to deepening economic integration. As the fourth- and sixth-largest economies in the world, respectively, India and the UK’s bilateral engagement holds global significance. The agreement follows the conclusion of negotiations announced on May 6, 2025. Bilateral trade currently stands at nearly $56 billion, with a joint goal to double this figure by 2030.
CETA secures unprecedented duty-free access for 99 percent of India’s exports to the UK, covering nearly the entire trade basket. This is expected to boost labor-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewelry, as well as fast-growing sectors like engineering goods, auto components, and organic chemicals.
India’s services sector will also benefit substantially. The agreement provides broader market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade. Indian professionals—including architects, engineers, chefs, yoga instructors, and musicians—will benefit from simplified visa procedures and liberalized entry categories, making it easier to work in the UK.
India has also secured a Double Contribution Convention, exempting Indian professionals and their employers from social security payments in the UK for up to three years. This will enhance the cost competitiveness of Indian talent.
Designed to promote inclusive trade, the agreement supports women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs by opening access to global value chains. It also includes provisions to encourage innovation, promote sustainable practices, and reduce non-tariff barriers.
CETA is expected to significantly boost trade volumes in the coming years, creating jobs, expanding exports, and fostering a deeper, more resilient economic relationship between India and the United Kingdom.
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