Geeta Singh
From shrimp to Scotch whisky, from electric vehicles to Vannamei exports, the India-UK Comprehensive Economic and Trade Agreement (CETA) promises a new era of economic collaboration, market access, and consumer choice
After over three years and 14 rounds of negotiations, India and the United Kingdom have finally signed a landmark Comprehensive Economic and Trade Agreement (CETA). Sealed in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, the deal is being hailed as the most significant bilateral trade pact signed by the UK post-Brexit—and one of India’s most impactful economic partnerships in recent years.
With a projected 39% increase in bilateral trade and a potential £4.8 billion boost to UK GDP, the agreement lays the foundation for a deeper, more strategic economic alliance between two of the world’s most dynamic economies.
India’s Seafood Sector Swims into the Big League
Among the biggest winners of CETA is India’s fisheries and marine export industry. The agreement eliminates tariffs on a wide range of seafood products, including shrimp, frozen fish, squid, and value-added marine items. This levels the playing field for Indian exporters who have so far faced stiff competition from countries like Vietnam and Singapore, both of which enjoy FTAs with the UK.
In 2024–25, India exported $7.38 billion worth of seafood, with frozen shrimp alone accounting for $4.88 billion. Exports to the UK stood at $104 million, with shrimp making up a significant 77% of that. With duty-free access now secured, India’s marine products are poised for greater market penetration and higher revenue. “This is a turning point for the sector,” said the Ministry of Fisheries, highlighting how the agreement will uplift coastal livelihoods, improve traceability systems, and promote India as a sustainable and reliable seafood supplier.
Luxury on Wheels: Cars Get a Price Cut
While the Indian seafood industry rejoices, car enthusiasts also have reason to celebrate. Under CETA, India has agreed to gradually reduce import duties on luxury cars—a sector long encumbered by tariffs ranging from 70% to 110%.
The Mini Cooper, which currently retails for around ₹45 lakh in India, could drop to ₹27–31 lakh once tariffs fall to 30–50% in the first year. Likewise, an Aston Martin Vanquish, priced at ₹8.85 crore today, may see a 24% reduction, bringing the sticker price closer to ₹6.7 crore.
For electric and hybrid vehicles, the deal is even sweeter. CETA eliminates tariffs altogether on EVs priced under £40,000, and reduces them to 50% for higher-end zero-emission models, with quotas gradually increasing over the next 15 years.
Spirits & Cheese: A Smoother Sip and Bite
Tariffs on iconic British exports like Scotch whisky and gin—currently taxed at a steep 150%—will be slashed to 75% immediately, with a gradual reduction to 40% over 10 years. Likewise, tariffs on UK food items such as lamb, salmon, and cheese will be eliminated, boosting variety and price competitiveness in the Indian market.
This isn’t just about indulgence. With rising disposable income among India’s burgeoning middle class, demand for premium food and beverage products is set to soar—and CETA ensures the shelves will be stocked.
The Mini Cooper, which currently retails for around ₹45 lakh in India, could drop to ₹27–31 lakh once tariffs fall to 30–50% in the first year. Likewise, an Aston Martin Vanquish, priced at ₹8.85 crore today, may see a 24% reduction, bringing the sticker price closer to ₹6.7 crore.
Opening Doors in Manufacturing
The trade pact goes beyond goods. CETA removes restrictions on UK businesses providing services in sectors like telecom, construction, and environmental services—without the requirement to set up a local office or maintain residency in India.
Simultaneously, India gains duty-free access to 99% of UK tariff lines, benefiting labour-intensive sectors such as textiles, apparel, leather, gems and jewellery, and ready-to-eat foods. Tariff reductions on processed prawns, basmati rice, and footwear will further boost Indian exports.
Notably, the agreement ensures zero tariffs on advanced industrial machinery and components for electric vehicles, aligning well with India’s manufacturing ambitions under Make in India.
Strategic and Symbolic Value
The India-UK FTA is more than an economic arrangement—it’s a strategic partnership reflecting India’s rise in global trade negotiations and the UK’s post-Brexit pivot toward the Indo-Pacific.
The UK-India trade volume already stands at £43 billion, with India poised to become the third-largest global economy by 2028. Forecasts suggest a 144% surge in India’s import demand by 2035—making this the ideal moment to deepen trade ties.
What Lies Ahead?
CETA is expected to be ratified by the UK Parliament later this year, with full implementation taking up to 12 months. However, its ripple effects have already begun—reshaping consumer prices, export strategies, and global positioning for both countries.
Whether it’s a shrimp exporter from Andhra Pradesh, a Scotch producer in Scotland, or a car buyer in Mumbai, the India-UK trade pact has something for everyone. It’s not just a deal—it’s a recalibration of economic priorities that may well set the tone for India’s future FTAs.
