India and the United Kingdom signed a Free Trade Agreement (FTA) on Thursday. When will it come into force? Union Minister of Commerce Piyush Goyal said it may take a few months.
Goyal told news agency ANI that the Union Cabinet's approval in India had already happened the day before. "In the UK, it goes through the Parliament. So, I think it will take a few months," he said.
The minister added, "But with this certainty, now the industries and businesses can begin their planning and ready their supply chains, work on approvals and ordering..."
"Due to bipartisan support between both sides, I think it will be approved soon and implemented too," he said.
India-UK FTA | Key points
India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on Thursday, taking a major step toward building a stronger economic partnership.
The agreement was signed by Commerce and Industry Minister Piyush Goyal and Secretary of State for Business and Trade Jonathan Reynolds in the presence of the two Prime Ministers.
CETA secures unprecedented duty-free access for 99 per cent of India's exports to the UK, covering nearly the entire trade basket.
This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals.
The services sector will also see wide-ranging benefits. The agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade.
Indian professionals, including those deployed by companies to work in the UK across all service sectors and professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK.
India has also secured an agreement on the Double Contribution Convention. This will exempt Indian professionals and their employers from social security payments in the UK for up to three years, improving the cost competitiveness of Indian talent.
The agreement has been designed to make trade more inclusive. Women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs will gain new access to global value chains, supported by provisions that encourage innovation, promote sustainable practices, and reduce non-tariff barriers
The bilateral trade between the two countries stands at nearly USD 56 billion, with a joint goal to double this figure by 2030.
