Indian Exporters Must Meet UK Standards To Unlock CETA Benefits: Experts

New Delhi, Jun 22 (KNN) Indian exporters will need to upgrade product standards and align with British regulatory requirements to fully benefit from the India-UK Comprehensive Economic and Trade Agreement (CETA), experts have said. 

They also underlined the need for a structured government outreach programme to inform domestic industries about the agreement's provisions.

The United Kingdom's Department for Business and Trade has already launched a nationwide roadshow across six cities this week to prepare British businesses for the pact's entry into force on July 15. Experts said a comparable effort is needed on the Indian side.

Rudra Kumar Pandey, Partner, SAM and Co.(law firm), said, “A comparable effort is needed on the Indian side, with CETA-specific outreach export-readiness programmes in manufacturing clusters across the country that can help businesses convert the agreement's potential into actual commercial activity,” as quoted by PTI.

He added that Indian exporters must position themselves as reliable supply chain partners rather than one-off suppliers.

Investment Treaty Also Needed

Pandey also called for the early finalisation of a bilateral investment treaty between India and the UK, saying it would give investors confidence through binding legal protection — a prerequisite for capital-intensive, long-term commitments.

Tariff Cuts Open Significant Opportunities

Gulzar Didwania, Partner, Deloitte India, noted that the agreement is set to catalyse two-way capital flows across sectors including advanced manufacturing, electric vehicles and components, fintech, life sciences, clean energy and high-value services.

He highlighted that the tariff reductions carry material commercial weight. UK duties of up to 12 per cent on textiles and clothing, 16 per cent on leather and footwear, 18 per cent on engineering goods and auto components, and 70 per cent on processed foods will be eliminated under the pact — placing Indian exporters on a level footing with competitors.

"India's leather and footwear exports to the UK alone are projected to nearly double from about USD 494 million in 2024 to USD 1 billion within three years, while India's textile sector, currently the UK's fourth-largest supplier with a 6.1 per cent market share, is positioned to materially expand its presence in a high-value consumer market," Didwania said, as cited by PTI.

A Gateway Beyond Trade

For India, the UK offers access to European and global markets, a deep services economy and advanced technology and research ecosystems. For the UK, India provides manufacturing scale, depth and an increasingly mature regulatory environment, Didwania noted.

Deep Kapuria, Chairman, Hi-Tech Gears and an international trade expert, emphasised that the pact's most significant achievement may be the social security agreement. 

"The UK is one of the preferred locations for Indian knowledge workers as both students and professionals from India have been the major beneficiaries of work and study visas," he said.

(KNN Bureau)