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, is set to give a major boost to India’s small and medium enterprises (SMEs), which form the backbone of the country’s economy. SMEs contributed around 30.1% to India’s GDP in 2022–23 and accounted for 45.8% of India’s total exports in 2024–25.
SMEs benefit from various provisions of the CETA, including through provisions on faster processing at customs, agreements to recognise and facilitate digital systems and paperless trade, and a dedicated chapter to help SMEs. A contact point for SMEs will be established under the ambit of the CETA, facilitating communication and coordination benefiting SMEs.
In addition to lower tariffs and better market access, SMEs will also benefit from the cooperation between India and the UK on best practices regarding trade education and finance, digital skills, business infrastructure and other important areas, facilitating business opportunities for SMEs.
The Working Group on Government Procurement and on Innovation enable cooperation to address the issues of SMEs and facilitate participation in government procurement and innovation.