The India and United Kingdom (UK) Comprehensive Economic and Trade Agreement (CETA) has the potential to create better-paying and higher-quality jobs for young Indians by expanding opportunities in both manufacturing and services, said Director General of the Confederation of Indian Industry (CII), Chandrajit Banerjee.
In an exclusive interaction with Times Now Digital on the trade agreement, Banerjee also said the successful implementation of the UK agreement strengthens India’s credibility in negotiating future trade deals with major economies such as the European Union and the United States.
He further answered questions on the likely impact of the India-UK CETA on manufacturing and jobs, consumer benefits, employment opportunities for young Indians, India’s future FTA negotiations with the EU and US, and whether tariff cuts could make UK imports more affordable for Indian consumers.
Here are the edited excerpts:
Q: Can CETA trigger fresh investments in manufacturing and create jobs in labour-intensive sectors?
The India-UK CETA is expected to act as a strong catalyst for manufacturing-led growth and employment generation, particularly in labour-intensive sectors. By providing zero-duty access for 99% of Indian exports to the UK, the agreement significantly enhances the competitiveness of Indian products. As bilateral trade is projected to increase to USD 100 billion by 2030, these developments are likely to generate new employment opportunities, particularly in export-oriented manufacturing.
Labour-intensive sectors such as textiles, leather, footwear, marine products, gems and jewellery, as well as high-value sectors including engineering goods and chemicals, stand to benefit substantially from the elimination of tariffs.
Duties of up to 70% on processed foods, 18% on engineering goods, and 12% on textiles will be reduced to zero, creating new export opportunities and encouraging capacity expansion, investment, and job creation.
Q: What opportunities the agreement provide for India beyond trade?
Beyond trade, the CETA is expected to strengthen bilateral investment ties. The UK is already India’s sixth-largest investor, accounting for around 5% of cumulative FDI equity inflows into India. The agreement provides a more predictable and transparent investment environment through provisions that promote regulatory certainty and investor confidence.
These reforms are expected to encourage greater UK investment in key sectors such as manufacturing, financial services, renewable energy, and advanced technologies, supporting industrial growth, technology transfer, and the creation of quality employment in India.
Q: Will Indian consumers see any immediate benefits from this agreement?
Yes, although the benefits will be gradual and targeted. India has liberalized 89.5% of its tariff lines, covering 91% of UK exports, while protecting sensitive sectors such as dairy, cereals, pulses, gold, and jewellery.
Consumers may benefit from lower prices and greater product choices in areas where tariffs are eliminated or reduced, particularly for certain engineering products, electronics, pharmaceuticals, chemicals, and premium consumer goods imported from the UK.
Businesses will also benefit from easier access to advanced machinery, industrial inputs, and technology, which can improve productivity and eventually reduce production costs. At the same time, tariff reductions in strategically important sectors are phased over 5, 7, or 10 years, ensuring that domestic industry has sufficient time to adjust.
Q: Can this trade deal help create better-paying jobs for young Indians?
The India-UK CETA has the potential to create better-paying and higher-quality jobs for young Indians by expanding opportunities in both manufacturing and services. As exports grow and businesses become more integrated with global value chains, demand is expected to increase for skilled workers across sectors such as engineering, electronics, pharmaceuticals, chemicals, auto components, logistics, digital technologies, quality assurance, design, and sustainability compliance.
Combined with greater UK investment, technology transfer, and collaboration in education and skills, the CETA is expected to support the creation of more skilled and better-paying jobs for India’s youth.
Q: What kind of jobs and business opportunities can be created?
The agreement provides greater mobility for Indian professionals by facilitating the temporary movement of business visitors, contractual service suppliers, and independent professionals under transparent and predictable entry provisions. In addition, enhanced market access for sectors such as IT, financial services, education, and healthcare will create new opportunities for India’s highly skilled workforce.
Dedicated provisions for Indian chefs, yoga instructors, and classical musicians further recognize India’s professional and cultural strengths in the UK market. An additional advantage is the Double Contribution Convention (DCC) reducing costs and enhancing their competitiveness.
Q: Does the success of the UK agreement strengthen India’s hand in negotiations with the European Union and the United States?
The successful conclusion and implementation of the India-UK CETA demonstrates India’s ability to negotiate comprehensive, balanced, and commercially meaningful trade agreements with major developed economies.
It provides confidence that India can pursue ambitious trade liberalisation while safeguarding sensitive sectors through calibrated market access and phased tariff reductions.
The agreement provides a useful template for future negotiations by incorporating balanced tariff commitments, provisions on services, investment, MSMEs, digital trade, labour, gender, and regulatory cooperation. These experiences can help inform India’s ongoing negotiations with United States.
The agreement also signals India’s growing importance as a trusted manufacturing and investment partner in global supply chains.
Q: Could the agreement eventually make certain imported products from the UK more affordable? Which ones and how much?
Although the impact will vary across products and will not be immediate in every case. India has committed to liberalising tariffs on 89.5% of tariff lines, with many products such as engineering goods, electronics, chemicals, pharmaceuticals, textiles, leather products, glass and ceramics receiving tariff elimination either immediately or over a phased period. Consumers and businesses may therefore benefit from lower prices on eligible UK products as tariffs decline.
For sectors where India is building domestic manufacturing capabilities under initiatives such as Make in India and the PLI Scheme, tariff reductions will be implemented gradually over 5, 7, or 10 years. Sensitive sectors, including dairy, cereals, pulses, gold, jewellery, smartphones, and several strategic products, have been excluded or remain protected, so consumers should not expect price changes in these categories.
The extent of retail price reductions will ultimately depend not only on tariff cuts but also on factors such as exchange rates, shipping costs, taxes, and business pricing decisions.
Exclusive: India-UK CETA To Create Skilled, Better-Paying Jobs For India’s Youth, Says CII Director General
