India and the United Kingdom on Thursday signed a landmark Comprehensive Economic and Trade Agreement (CETA), aimed at enhancing access to goods and services between the two countries.
The agreement, signed in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, will generate tangible employment gains and create brighter futures for Indian workers across multiple sectors. It also focuses on fostering inclusive economic growth by creating meaningful opportunities for women and youth across both nations.
The immediate removal of duties on Indian products from labour-intensive sectors such as gems and jewellery, textiles, leather and footwear, and food processing will not only boost employment but also directly benefit Indian workers in these industries.
The CETA offers a range of protections to workers by endorsing internationally recognized labour rights. Workers will benefit from increased public awareness of labour laws and access to impartial and independent tribunals and proceedings for the enforcement of their rights in an accessible and transparent manner.
Expanding opportunities for women and youth
India’s youth, aged 15 to 29, make up approximately 27.3% of the population and are key drivers of social and economic change. The CETA is poised to expand high-quality employment pathways for this demographic by easing access to services markets, securing mutual recognition of professional qualifications, and facilitating short-term mobility for talent in sectors such as IT, healthcare, finance, and the creative industries.
By fostering cooperation on gender-responsive standards, sharing best practices in financial services, and improving digital inclusion, the CETA ensures that women business owners, entrepreneurs, and young professionals can access new markets, acquire valuable information, and participate equitably in global, regional, and domestic economies.
Dedicated working groups under the CETA will promote activities that address discriminatory practices, encourage diversity, and further gender equality. Lower tariffs on inputs and advanced manufacturing equipment can spur MSME supply-chain integration, creating skilled vocational jobs beyond metros.
Additionally, the CETA will promote cooperative activities between the Parties that will enable capacity and skill development of workers.
The CETA also provides enhanced market access for workers which include better mobility access to the UK for Indian workers engaged in maintenance and repair and tourist guides, among others. The CETA and its enhanced market access will create job opportunities for a wide range of workers across various sectors.