India–UK Comprehensive Economic and Trade Agreement

 

1. The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) provides zero-duty access to nearly 99% of India’s exports, covering almost the entire value of bilateral merchandise trade.

2. Merchandise trade between India and the United Kingdom reached USD 25.12 billion in 2025–26, with India recording a trade surplus of USD 1.76 billion.

3. Bilateral services trade stood at USD 35.44 billion in 2024, and India recorded a services trade surplus of USD 7.88 billion.

4. The United Kingdom is India’s sixth-largest source of inward investment, with cumulative equity investment of about USD 35 billion up to September 2024.

5. The Migration and Mobility Partnership Agreement was signed on 4 May 2021 to facilitate the movement of professionals between India and the United Kingdom.

6. Under the Young Professionals Scheme, 3,000 visas are issued annually to graduates aged 18–30 years for a two-year stay and work opportunity.

7. India has offered tariff concessions on 89.5% of its tariff lines, covering around 91% of the United Kingdom’s exports to India.

8. Sensitive Indian sectors such as dairy, cereals, pulses, edible oils, apples, affordable electric vehicles, smartphones, optical fibres, and critical fuels remain protected through exclusions or phased tariff reductions.

9. India has allowed quota-based preferential access for 37,000 completely built passenger vehicles annually, while concessions for electric vehicles begin only from the sixth year.

10. The agreement provides zero-duty access for Indian textile products across 1,143 tariff lines, improving competitiveness against suppliers such as Bangladesh, Pakistan, and Cambodia.

11. Agricultural products receive zero-duty access across 1,437 tariff lines, and Indian agricultural exports to the United Kingdom are expected to increase significantly.

12. Engineering goods receive zero-duty access across 1,659 tariff lines, with Indian engineering exports to the United Kingdom projected to exceed USD 7.5 billion by 2029–30.

13. India secured commitments from the United Kingdom across all 12 major services sectors and 137 sub-sectors, covering over 99% of India’s services export interests.

14. The Double Contribution Convention removes dual social-security contributions for Indian professionals posted in the United Kingdom for up to 60 months, benefiting over 75,000 professionals and around 900 companies.

15. Indian suppliers gain access to the United Kingdom’s government procurement market worth about GBP 90 billion, while British suppliers receive reciprocal access to India’s procurement market worth around USD 114 billion.

 

Must Know Terms :

 

 

1.Comprehensive Economic and Trade Agreement (CETA): CETA is a comprehensive Free Trade Agreement between India and the United Kingdom aimed at expanding trade, investment, services, professional mobility, digital trade, and economic cooperation through tariff reduction and improved market access.

 

2. Double Contribution Convention (DCC): The Double Contribution Convention exempts Indian professionals and their employers from paying dual social-security contributions in the UK for assignments of up to 60 months, benefiting over 75,000 professionals and around 900 companies.

 

3. Young Professionals Scheme (YPS): The Young Professionals Scheme, announced in 2022, allows 3,000 Indian and UK graduates aged 18–30 years to live and work in each other’s country for up to two years every year.

 

4. Migration and Mobility Partnership (MMP): Signed on 4 May 2021, the Migration and Mobility Partnership facilitates the legal movement of professionals, students, researchers, and skilled workers between India and the United Kingdom while strengthening cooperation on migration management.

 

5. Mutual Recognition Agreement (MRA): Under CETA, India and the United Kingdom agreed to pursue Mutual Recognition Agreements for professional qualifications within 12 months of the agreement entering into force. The proposed MRAs cover nursing, accountancy, and architecture.

 

6. Authorised Economic Operator (AEO): The Authorised Economic Operator (AEO) programme is a trade facilitation mechanism that provides trusted businesses with faster customs clearance, lower compliance costs, and simplified border procedures. CETA promotes the use of AEO frameworks to facilitate seamless bilateral trade.

 

MCQ :

1. With reference to the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), consider the following statements:

1. It provides zero-duty access to nearly 99% of India’s exports.
2. It covers almost the entire value of bilateral merchandise trade.
3. It is limited only to trade in goods.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 only
D. 1, 2 and 3

2. Assertion (A): India recorded a merchandise trade surplus with the United Kingdom in 2025–26.

Reason (R): India’s merchandise exports to the UK exceeded its imports from the UK.

A. Both A and R are true, and R is the correct explanation of A.
B. Both A and R are true, but R is not the correct explanation of A.
C. A is true, but R is false.
D. A is false, but R is true.

3. With reference to India–UK trade, consider the following statements:

1. Merchandise trade reached USD 25.12 billion in 2025–26.
2. Bilateral services trade stood at USD 35.44 billion in 2024.
3. India recorded a services trade surplus of USD 7.88 billion.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

4. Which one of the following correctly describes the Double Contribution Convention (DCC)?

A. It eliminates customs duties on all goods.
B. It removes dual social-security contributions for eligible Indian professionals in the UK.
C. It allows duty-free import of automobiles.
D. It creates a common labour market between India and the UK.

5. Match List-I with List-II:

List-I List-II

A. CETA 1. India–UK Free Trade Agreement
B. DCC 2. Social security contribution relief
C. MMP 3. Professional mobility
D. YPS 4. Two-year work opportunity

Codes:

A. A-1, B-2, C-3, D-4
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-1, D-2
D. A-4, B-3, C-2, D-1

6. The Migration and Mobility Partnership (MMP) between India and the United Kingdom was signed in:

A. 2020
B. 2021
C. 2022
D. 2023

7. Under the Young Professionals Scheme (YPS), consider the following statements:

1. It provides 3,000 visas every year.
2. It is available to graduates aged 18–30 years.
3. The visa is valid for two years.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

8. India has offered tariff concessions on:

A. 75% of tariff lines covering 80% of UK exports
B. 89.5% of tariff lines covering around 91% of UK exports
C. 95% of tariff lines covering 99% of UK exports
D. 100% of tariff lines covering all UK exports

9. Which of the following sectors continue to receive protection under the India–UK CETA?

1. Dairy
2. Pulses
3. Affordable electric vehicles
4. Smartphones

Select the correct answer using the code below.

A. 1 and 2 only
B. 2, 3 and 4 only
C. 1, 2, 3 and 4
D. 1 and 4 only

10. Assertion (A): India adopted a phased liberalisation strategy for automobiles under CETA.

Reason (R): Sensitive segments of the Indian automobile industry continue to receive protection.

A. Both A and R are true, and R is the correct explanation of A.
B. Both A and R are true, but R is not the correct explanation of A.
C. A is true, but R is false.
D. A is false, but R is true.

11. Which of the following statements regarding sectoral market access under CETA is correct?

A. Indian textile products receive zero-duty access across 1,143 tariff lines.
B. Engineering goods receive zero-duty access across 500 tariff lines.
C. Agricultural products receive zero-duty access across only 500 tariff lines.
D. Pharmaceuticals receive duty-free access across 1,659 tariff lines.

12. Match List-I with List-II:

List-I List-II

A. Textiles 1. 1,143 tariff lines
B. Agriculture 2. 1,437 tariff lines
C. Engineering Goods 3. 1,659 tariff lines
D. Services 4. 12 sectors and 137 sub-sectors

Codes:

A. A-1, B-2, C-3, D-4
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-1, D-2
D. A-4, B-3, C-2, D-1

13. Under CETA, India secured commitments from the United Kingdom covering:

A. 8 service sectors and 90 sub-sectors
B. 10 service sectors and 120 sub-sectors
C. 12 service sectors and 137 sub-sectors
D. All service sectors without sub-sector commitments

14. Which one of the following statements regarding government procurement under CETA is correct?

A. Only UK firms gain access to India’s procurement market.
B. Indian suppliers gain access to the UK’s government procurement market worth about GBP 90 billion.
C. Government procurement is excluded from CETA.
D. Procurement access is limited only to defence contracts.

15. With reference to the India–UK Comprehensive Economic and Trade Agreement (CETA), consider the following statements:

1. It promotes trade, investment, and professional mobility.
2. It supports digital trade and simplified customs procedures.
3. It includes provisions for Mutual Recognition Agreements (MRAs) for professional qualifications.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3