Services sector to gain most from India-UK trade pact: Goyal

Commerce and Industry Minister Piyush Goyal on Saturday said the services sector would emerge as the biggest beneficiary of the India-UK Comprehensive Economic and Trade Agreement (CETA), signed on Thursday. He termed the deal a “game-changer” that will unlock new opportunities across India’s economic landscape.

India’s services trade with the UK currently stands at $33 billion, with a $6.6 billion surplus, according to the Commerce Ministry. The agreement grants India deep market access in 137 sub-sectors, including professional, business, financial and environmental services — all poised to drive investments, competitiveness and technology transfer into India.

Significantly, the UK has made strong commitments in digitally delivered services, a move expected to bolster India’s share in its $200 billion services import market, particularly in IT and business services.

Goyal emphasised that the agreement would open doors for farmers, MSMEs, labour, youth, entrepreneurs and fishermen, while protecting sensitive sectors such as dairy, rice and sugar. The deal offers tariff-free access to 85 per cent of UK tariff lines, while eliminating duties on 99 per cent of Indian exports.

The minister also highlighted regional benefits — from pashmina and saffron in Jammu & Kashmir to the auto-component industry in Haryana — and announced plans to begin state-level stakeholder consultations to help industries understand the trade pact’s regulatory and market framework.

Goyal noted that the pact includes a mutual review clause, allowing both nations to revisit provisions after five years, especially in light of non-tariff barriers such as the UK’s Carbon Border Adjustment Mechanism.

The India-UK CETA, in the works since January 2022, also opens new markets for British whisky and automobiles while aiming to create thousands of jobs in both countries.