India-UK CETA: Ahmedabad's first shipment flagged off from Sanand ICD
Synopsis
Key Takeaways
Ahmedabad marked a historic milestone on 15 July 2025 as the first export consignment under the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) was flagged off from the Inland Container Depot (ICD) at Sanand, signalling the operational start of preferential tariff-free trade between India and the UK. The shipment, valued at over ₹3.07 crore, comprised cargo from seven exporters in the Ahmedabad region — the same day the landmark agreement entered into force.
The Inaugural Shipment
The consignment, valued precisely at ₹3,07,76,171.36 according to the Ministry of Commerce and Industry, was organised by the Office of the Additional Director General of Foreign Trade (DGFT), Ahmedabad, in coordination with the Customs Department. It covered a diverse range of sectors — industrial equipment, pharmaceuticals, automobiles, polymers, and textiles — reflecting the breadth of Ahmedabad's manufacturing base.
The seven participating exporters were JCB Industries Pvt. Ltd, Otsuka Pharmaceutical India Pvt. Ltd, Maruti Suzuki India Limited, Canpac Trends Pvt. Ltd, Secure Meters Ltd, Shri Ambica Polymer Pvt. Ltd, and Vishakha Polyfab Pvt. Ltd.
Who Attended the Flag-Off
The ceremony was attended by British Deputy High Commissioner in Ahmedabad Stephen Hickling, Additional Commissioner of Customs Ram Vishnoi, and Joint Director General of Foreign Trade Rahul Singh. Assistant DGFTs Deepshikha Singh and Divya Patel, along with representatives of the exporting companies and the Export Promotion Council, were also present.
What the India-UK CETA Covers
The India-UK CETA was signed in London on 24 July 2024 by Union Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer. It entered into force on 15 July 2025, alongside the Double Contribution Convention (DCC) on social security.
Under CETA, 99% of India's exports to the UK — covering nearly the entire value of bilateral merchandise trade — receive duty-free market access. The agreement spans labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys, as well as engineering goods, chemicals, and automobile components. India has, in turn, opened 89.5% of its tariff lines, covering 91% of UK exports, while retaining protections for sensitive sectors including dairy, cereals, pulses, and certain essential oils.
Gujarat's Expected Gains
Officials said Gujarat is expected to be among the primary beneficiaries of the agreement. The state stands to gain from expanded export opportunities in pharmaceuticals concentrated in Ahmedabad, chemicals from Surat and Bharuch, engineering goods from Rajkot, and marine products from Veraval. The agreement is also projected to ease UK market access for micro, small and medium enterprises by lowering trade barriers.
The DCC and Professionals' Benefit
The accompanying Double Contribution Convention exempts Indian professionals on temporary assignments in the UK from making dual social security contributions for up to five years. This provision is expected to benefit more than 75,000 professionals and over 900 Indian companies, with estimated annual savings exceeding ₹4,000 crore.
India and the UK currently conduct bilateral trade worth approximately USD 56 billion — comprising merchandise trade of around USD 23 billion and services trade of approximately USD 33 billion. Both governments have set a target of doubling bilateral trade by 2030 under the new framework.