India-UK FTA goes beyond goods in big boost to services exports

New Delhi, July 27 The India-UK Comprehensive Economic and Trade Agreement (CETA) goes beyond goods and addresses services exports, which are a core strength of India’s economy. Currently, India's services exports to the UK are a robust $19.8 billion, and CETA promises to expand this further with increased mobility for professionals across IT, healthcare, finance, and education.

CETA is providing for streamlined entry for contractual service suppliers, business visitors, intra-corporate transferees, and independent professionals (e.g., yoga instructors, chefs, and musicians).

Another major breakthrough is the Double Contribution Convention, which exempts Indian workers and their employers from paying UK social security contributions for up to three years when on temporary assignments. Around 75,000 workers and over 900 companies are expected to benefit, resulting in savings of more than Rs 4,000 crore.

The free trade agreement includes a wide-ranging package covering Information Technology, IT-enabled services, financial and professional services, business consulting, education, telecom, architecture, and engineering that will unlock high-value opportunities and job creation.

Services are a core strength of India’s economy, and the agreement provides deeper market access across IT, financial services, education, and healthcare. It also creates a structured framework for the temporary movement of professionals. Business visitors, contractual service suppliers, and independent professionals can now access the UK under clear and predictable entry rules. Additionally, up to 1,800 Indian chefs, yoga instructors, and classical musicians can work in the UK every year under these provisions.

The agreement also simplifies compliance by allowing exporters to self-certify the origin of products, reducing time and paperwork. UK importers can also rely on importers’ knowledge for certification, further easing trade. For small consignments under 1,000 pounds, there is no requirement for origin documentation, which supports e-commerce and small businesses. Product Specific Rules of Origin (PSRs) align with India’s current supply chains for key sectors such as textiles, machinery, pharmaceuticals, and processed food.

Bilateral trade between Indian and the UK has already reached $56 billion, and the free trade agreement aims to double this by 2030.

Commerce and Industry Minister Piyush Goyal said: "The India–UK Comprehensive Economic and Trade Agreement (CETA) is designed to open new avenues for trade and investment, while protecting India’s core economic interests. It combines tariff reduction, simpler rules for trade, strong provisions for services, and measures that make professional mobility easier."

This FTA will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India’s core interests and accelerating our journey towards becoming a global economic powerhouse, he added.

CETA provides an unprecedented duty-free access to 99 per cent of India’s exports to the UK, covering nearly 100 per cent 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. This will spur large-scale employment generation, empowering artisans, women-led enterprises, and MSMEs.

India has opened 89.5 per cent of its tariff lines, covering 91 per cent of the UK’s exports, safeguarding sensitive sectors and strategically important products where domestic capability is being built. Elimination of duties will make a range of imported products more affordable for consumers, offering greater variety and quality at competitive prices.

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