India–UK CETA Opens Fresh Growth Avenues for Trade, Investment and MSMEs: DGFT

India–UK trade pact expected to boost exports, attract investment and help MSMEs expand into global markets through improved market access and simplified trade provisions

The India–UK Comprehensive Economic and Trade Agreement (CETA) is expected to strengthen bilateral trade and investment while creating new opportunities for exporters, MSMEs and businesses across multiple sectors. Industry leaders and government officials highlighted the agreement’s potential during the “India–UK CETA Dialogue: Unlocking New Trade & Investment Opportunities”, organised by MVIRDC World Trade Center Mumbai in association with the All India Association of Industries (AIAI).

India–UK CETA to Strengthen Bilateral Economic Relations

Speaking at the event, Shri R.K. Mishra, Additional Director General of Foreign Trade (DGFT), Mumbai, Ministry of Commerce & Industry, Government of India, described the India–UK Comprehensive Economic and Trade Agreement (CETA) as a landmark step in bilateral economic relations and one of India’s most ambitious trade agreements covering goods, services, investment and mobility.

He said the agreement presents significant opportunities for Indian exporters and MSMEs to expand their presence in the UK, access new markets and integrate more deeply into global supply chains.

“The focus under CETA must now shift towards effective utilisation of the agreement by businesses, particularly MSMEs, through tariff benefits, simplified rules of origin, self-certification and opportunities in UK government procurement. The Government of India’s Export Promotion Mission will further strengthen MSME competitiveness through export credit, market intelligence, certification and compliance support. The UK’s strengths in technology, finance and advanced manufacturing, combined with India’s skilled manpower, manufacturing capacity and entrepreneurial strength, can create significant new opportunities. Stronger business-to-business connections and greater awareness at the enterprise level will be critical to realising CETA’s full potential,” said Shri R.K. Mishra.

UK Highlights Business Opportunities Across Key Sectors

Mr. Mark Birrell, Trade Counsellor – South Asia, British Deputy High Commission, Mumbai, said the agreement creates a framework that makes trade more efficient while encouraging collaboration between businesses in both countries.

“CETA is a landmark agreement between two of the world’s largest and most dynamic economies. It makes trade cheaper, quicker and easier, but its success will ultimately depend on businesses using the opportunities it creates through exports, investment and collaboration. The agreement opens significant opportunities across advanced manufacturing, medical devices, aerospace, automotive, clean energy, textiles, engineering goods and processed foods, as well as services such as finance, education, research and innovation. Mumbai and Maharashtra will have an important role to play in strengthening the India–UK trade and investment corridor.”

Zero-Duty Access Expected to Benefit Indian Exporters

Dr. Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai and President, AIAI, highlighted the market access provisions under the agreement.

He stated that CETA provides zero-duty access to nearly 99% of India’s exports to the UK, covering almost 100% of India’s export value, while India will remove or reduce tariffs on 90% of tariff lines for UK goods, covering 92% of existing UK goods exports to India.

According to Dr. Kalantri, sectors including textiles, pharmaceuticals, leather and engineering goods, along with other labour-intensive industries, are expected to benefit from improved market access and reduced tariffs.

“CETA provides zero-duty access to nearly 99% of India’s exports to the UK, covering almost 100% of India’s export value, while India will remove or reduce tariffs on 90% of tariff lines for UK goods, covering 92% of existing UK goods exports to India. Key Indian sectors such as textiles, pharmaceuticals, leather, engineering goods and other labour-intensive industries stand to benefit significantly from improved market access and lower tariffs. Effective implementation, greater awareness among MSMEs and stronger business-to-business linkages will be crucial to converting these advantages into higher exports, investments and long-term commercial partnerships.”

Experts Discuss Financing and Expansion Opportunities

The event also featured insights from Ms. Garima Jain, International Market Advisor, Export Support Service; Mr. Sandeep Kudtarkar, Country Head, UKEF; and Mr. Abhishek Jha, Head of Inward Investment – Western India.

The speakers discussed opportunities arising from CETA, including increased interest among UK companies in partnering with Indian businesses, availability of government-backed export finance for eligible trade transactions, and the potential for Indian companies to use the UK as a gateway for international expansion.

They also highlighted opportunities across technology, healthcare, advanced engineering, energy, professional services, research and development, and innovation, along with the benefits of the Double Contribution Convention for Indian companies deploying professionals to the UK.

MSMEs Expected to Gain from Global Market Integration

Ms. Priya Pansare, Senior Director, MVIRDC World Trade Center Mumbai, said the agreement could strengthen India's integration into global value chains while supporting employment and business growth.

“The India–UK CETA opens significant opportunities for both trade and services, with several sectors poised to benefit from greater market access, investment, technology collaboration and business partnerships. By enabling Indian enterprises, particularly MSMEs, to integrate more deeply with global markets and value chains, the agreement can contribute meaningfully towards strengthening India’s competitiveness, creating employment and advancing the vision of Viksit Bharat 2047.”

The dialogue brought together MSMEs, exporters, entrepreneurs and industry representatives to discuss how the India–UK CETA can translate into practical opportunities across trade, investment, financing, technology collaboration and international business partnerships.