The India-U.K. Comprehensive Economic and Trade Agreement (CETA) will provide a boost for India’s farmers, entrepreneurs and micro, small, and medium enterprises, Prime Minister Narendra Modi said on Wednesday (July 15, 2026), the day the trade deal came into force.
Officials in the U.K. government as well as Indian industry bodies have welcomed the deal and the opportunities it presents.
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“The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs,” Mr. Modi posted on X. “Several vibrant sectors will gain stronger access to the U.K. market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent.”
Multiple gains for India
He added that the Double Contribution Convention, the social security agreement between India and the U.K. that also came into effect on July 15, will provide “invaluable support to Indian professionals” who are working temporarily in the U.K. and will strengthen the competitiveness of Indian enterprises.
Commerce Minister Piyush Goyal, too, took to social media to highlight the benefits to India from the deal.
“The India-UK FTA creates unprecedented opportunities for our textiles, leather, gems & jewellery, engineering goods, marine products, chemicals, processed foods, MSMEs, farmers and manufacturers,” Mr. Goyal said. “It also opens new frontiers for our IT, professional, financial, education and business services sectors, while expanding mobility for Indian talent.”
U.K. hails “watershed moment”
Officials of the U.K. government posted in India were also all praise for the deal, with Harjinder Kang, the UK’s Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, terming it a “watershed moment for the U.K.-India partnership”.
Speaking at an event organised by the British High Commission in New Delhi, Mr. Kang said that this trade deal is designed to benefit businesses and consumers “from day one” with cheaper, quicker and easier trade.
Indian industry hails sectoral gains
On the part of the Indian industry, Rajeev Singh, Director General of the Indian Chamber of Commerce, pointed out several sector-specific gains that India is set to see through the deal.
“Securing duty-free access for 99% of our exports is no small achievement, and its impact will be felt across sectors,” Mr. Singh said. “Textiles stand out in particular. Our exporters in Tirupur and Surat have long operated at a duty disadvantage against Bangladesh and Cambodia in the U.K. market, and that gap now closes, giving an entire manufacturing ecosystem room to grow.”
He added that India’s marine products, pharmaceuticals, leather and engineering goods all stand to gain meaningfully as well.
“Our pharmaceutical exporters, for instance, are now positioned to compete in a market that imports nearly $30 billion in medicines annually,” he said, adding that Indian consumers will benefit from more accessible Scotch, cosmetics and premium automobiles.
Services to benefit too
Chandrajit Banerjee, director general of the Confederation of India Industry, also highlighted the sector-specific gains in goods trade, but also added that the gains for the services sectors are equally important.
“Enhanced market access across IT, financial, professional, education and healthcare services, together with improved mobility provisions and the Double Contribution Convention, will strengthen the global competitiveness of Indian companies and professionals in the U.K.,” Mr. Banerjee said.
He added that modern provisions on digital trade, government procurement, innovation, intellectual property, MSMEs and labour also make the agreement future-ready, while creating new opportunities for startups, Global Capability Centres (GCCs) and collaboration in emerging technologies such as Artificial Intelligence (AI).
“The agreement also presents immense opportunities for Indian MSMEs to diversify exports, integrate into global value chains and access one of the world’s most sophisticated markets,” Mr. Banerjee said.
Published – July 15, 2026 03:37 pm IST
