India and the United Kingdom have unveiled a new trade pact poised to open fresh avenues for India's mineral sector, particularly aluminium. The pact called CETA (Comprehensive Economic and Trade Agreement) is expected to enhance market access and competitiveness, setting the stage for strategic collaborations and export opportunities. For industry stakeholders and observers alike, this marks a potentially transformative moment worth exploring further.
What is the CETA pact all about?
Once which started back in January 2022 and finalised on May 6, 2025 has been finally inked on July 27, 2025, the India–UK CETA pact is hailed as a historic step to boost jobs, exports and growth. The pact grants duty-free access to about USD 6.5 billion worth of Indian exports to the UK, covering textiles, footwear, carpets, automobiles, seafood and fresh fruits, while most remaining exports already enjoy zero-duty entry.
It phases out tariffs on nearly all Indian export lines and 90 per cent of UK tariff lines, benefiting sectors such as textiles, gems, jewellery, engineering goods and auto parts from India and beverages, automotive components, aerospace and medical devices from the UK. Valued at USD 56 billion in 2025, bilateral trade is targeted to double by 2030.
Also read: No carbon relief in UK trade deal — is India’s aluminium industry at risk?
What's with the Free Trade Agreement between India and the UK
The CETA pact signed between India and the UK is a part of the Free Trade Agreement (FTA), signed on 24 July 2025. It represents a significant leap forward in bilateral economic cooperation, marking India's first major trade pact in over a decade and the UK's fourth since Brexit. It is designed to elevate annual trade volumes by approximately EUR 25.5 billion (USD 34.5 billion), with ambitions to double bilateral trade to USD 120 billion by 2030 and further expand by USD 40 billion by 2040.
The agreement ensures zero or reduced tariffs on 99 per cent of Indian exports, which include textiles, machinery, pharma, auto parts and agri-products, while offering similarly favourable access for UK sectors such as beverages, cosmetics, processed foods and digital services. Crucially, the pact also promotes professional mobility via mutual recognition of qualifications and substantial social security savings, helping to enhance cross-border investment and workforce deployment.
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