India-UK Trade Agreement Changes the Game for Labor, MSMES and Startups: Piyush Goyal
Union Commerce and Industry Minister Piyush Goyal on Thursday called the India-UK Integrated Economic and Trade Agreement (CETA) a “historic leap” that would give workers, farmers, MSMES and startups across the country.
Goyal congratulated British Prime Minister Keir Starmer Narendra Modi, a citizen of both countries, on which the agreement freed 99% of India’s exports to the UK without responsibility access – providing a new opportunity for labor-intensive industries with nearly $23 billion.
The agreement was signed before the two prime ministers, marking a new chapter in India’s trade relations with developed countries.
It was signed in by Goyal and British Secretary of State Jonathan Reynolds, after the negotiations ended earlier this year.
“This deal will transform the lives of artisans, weavers and daily wage earners in fields such as textiles, leather, footwear, gems and jewelry, toys and marine products,” Goyal said in an article on social media platform X.
He added: “From the imminent villages to the tech lab, the FTA empowers women through improved financial access and deeper global integration.”
Agriculture is another big winner in the deal, with nearly 95% of Indian agricultural products available for entry into the UK without obligation.
Fisherfolk will also benefit from zero tariffs from 99% of marine exports. Goyal stressed that the agreement supports “inclusive and gender-equitable growth” and helps create a more resilient economy from the grassroots level.
In addition to the traditional sector, the agreement is expected to promote the engineering products, electronics, pharmaceuticals, chemicals, plastics and food processing industries, which are crucial to the manufacturing future in India. This will also make high-quality goods in the UK more affordable to Indian consumers.
The service industry is one of India’s economic powers and will be gained from better access to the UK market, finance, education and legal services.
Simplified visa rules and free entry regulations will ease the path of Indian chefs, yoga coaches, musicians, business visitors and professionals.
Another key highlight is the Double Contribution Convention, which will allow Indian professionals and their employers to pay three years of social security contributions in the UK.
Goyal called it a “major breakthrough” that enhanced the cost competitiveness of Indian talents abroad. The agreement also opens the door for Indian startups, giving them access to UK investors and innovation hubs, thus expanding their global footprint.
According to Goyal, CETA is a “win-win” for government flagship initiatives such as “Made in India” and “Locals” as it drives job creation and strengthens India’s strategic position in global trade.
