India-UK CETA to boost farmers, MSMEs and fishermen: Piyush Goyal
Synopsis
Key Takeaways
Commerce and Industry Minister Piyush Goyal on Tuesday, 23 June said the India-UK Comprehensive Economic and Trade Agreement (CETA) is a people-centric pact designed to expand opportunities for Indian farmers, fishermen, artisans, women entrepreneurs, and MSMEs without compromising the country's core interests. The agreement, which comes into force on 15 July, will immediately eliminate tariffs on approximately 99 per cent of tariff lines, covering nearly 100 per cent of bilateral trade value.
What the Agreement Covers
According to Goyal, the CETA delivers comprehensive market access for Indian goods in the UK across sectors, with particular emphasis on labour-intensive industries. The deal was signed last year in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer. Goyal described it as a 'transformational win-win agreement' that creates immediate export competitiveness gains for Indian producers.
Specific agricultural products set to receive duty-free access to the UK include turmeric, pepper, cardamom, mango pulp, pickles, and pulses. The minister noted that these benefits match or exceed those currently enjoyed by other European nations in the UK market.
Key Beneficiaries Across Sectors
Goyal outlined a broad cross-section of beneficiaries. Farmers gain access to premium export markets; fisherfolk benefit from enhanced seafood export volumes to the UK; workers in labour-intensive sectors stand to gain new employment; and professionals receive improved mobility and credential recognition opportunities.
On the manufacturing side, businesses producing soccer balls, cricket gear, rugby balls, and toys are expected to significantly expand their UK footprint. The minister cited hubs spanning the country — 'from the looms of Tiruppur to the labs of Bengaluru, from diamond artisans in Surat to coders in Hyderabad' — as direct beneficiaries of the deal.
Sensitive Sectors Kept Out
The CETA deliberately excludes India's most sensitive agricultural categories. Dairy products, cereals, millets, apples, oats, and cooking oils have been kept outside the agreement's scope. Goyal stated these exclusions reflect the government's strategy of prioritising food security, domestic price stability, and the interests of vulnerable farming communities.
Broader Economic Impact
Beyond agriculture, Goyal argued that immediate duty-free UK market access will accelerate Indian manufacturing, enabling traditional artisans, large-scale factories, and regional industrial hubs to compete more effectively against rival exporters. Small businesses, he said, will gain a clear competitive edge as tariff barriers — particularly in labour-intensive sectors — are dismantled from the agreement's effective date.
With the CETA set to take effect on 15 July, industry bodies and exporters will be watching closely to see whether the projected gains in farm incomes, job creation, and MSME access to global value chains materialise in the first full year of implementation.