India and the UK on Wednesday operationalised a free trade agreement, under which a host of domestic goods will enter the British market at zero duty.
A social security agreement has also been operationalised from July 15.
CII Director General Chandrajit Banerjee said the operationalisation of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) is a landmark milestone that will significantly strengthen bilateral economic relations and create new opportunities for the Indian industry.
Also Read: India-UK FTA comes into effect today, unlocking duty-free access for Indian exports
“For Indian industry, the CETA opens a new era of opportunities. Zero-duty access for 99 per cent of India’s exports to the UK will significantly enhance competitiveness of labour-intensive sectors such as textiles and apparel, leather and footwear, gems and jewellery, marine products and processed foods, while also creating new opportunities for engineering goods, auto components, chemicals and other value-added manufacturing sectors,” Banerjee said.
The agreement also provides greater certainty for businesses through improved market access, transparent rules and a stable trading framework, he added.FICCI President Anant Goenka said, “This landmark agreement complements the vision of Viksit Bharat, reinforcing the country’s aspirations for sustained economic growth, global competitiveness, and deeper integration with international markets”.
As India advances towards becoming a developed economy, high-quality economic partnerships will play an important role in expanding business opportunities, strengthening industrial capabilities, and enhancing the country’s participation in global trade and investment networks, he added.