- India and UK sign historic CETA to double trade to $100B by 2030
- Startups and MSMEs get zero-duty access on 99% of Indian tariff lines
- Provisions include simplified licensing, compliance, and global subcontracting support
- New visa and mobility paths for professionals and entrepreneurs
- Digital trade, IP protection, and regulatory certainty boost confidence for innovation
- Inclusive measures focus on youth, women-led enterprises, and rural MSMEs
- Access to UK investors, accelerators, and R&D partners for cross-border scaling
- CETA positions India as a future-ready, globally aligned startup hub
On July 24, 2025, India and the United Kingdom took a historic leap forward by signing the Comprehensive Economic and Trade Agreement (CETA). Executed by 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 Prime Minister Sir Keir Starmer, this landmark pact marks a bold new chapter in bilateral economic cooperation and startup empowerment.
Aiming to double trade from $56 billion to $100 billion by 2030, CETA sets the stage for high-growth entrepreneurship through unprecedented market access, streamlined talent mobility, digital synergy, and regulatory predictability.
Breaking Barriers: Unmatched Market Access & Tariff Relief
For startups in textiles, engineering, fintech, marine products, auto components, footwear, gems & jewellery, toys, and organic chemicals, CETA removes long-standing cost barriers. The deal grants zero-duty access on 99% of Indian exports to the UK, and the UK reciprocates by slashing tariffs on 90% of its tariff lines—including steep reductions on automobiles, whisky, and gin.
This dramatically lowers entry costs for labour-intensive and innovation-led sectors, making cross-border expansion easier and more affordable than ever.
Startup & MSME-Focused Provisions Driving Growth
CETA reflects a strong commitment to startups and MSMEs with dedicated provisions such as:
- Simplified export-import procedures
- Streamlined licensing and compliance
- Incentives for subcontracting and cross-border partnerships
It enables a smoother pathway into global markets while offering targeted support for women-led businesses, artisans, youth, and rural MSMEs, encouraging inclusive participation in global value chains.
Unlocking Global Talent: Mobility & Cost Efficiency
Expanding internationally requires people on the ground. CETA addresses this by introducing:
- Faster visa and work permit routes for service suppliers, business visitors, intra-corporate transferees, and independent professionals (including architects, engineers, chefs, yoga instructors, and artists)
- The Double Contribution Convention (DCC), which exempts Indian professionals and startups from UK social security contributions for up to three years
These initiatives lower employment costs and enhance operational flexibility—empowering even early-stage startups to scale across borders with ease.
Inclusion at the Core: Building a Vibrant Innovation Ecosystem
CETA is India’s first trade agreement to embed social chapters on labour rights, gender equality, and youth entrepreneurship. Key highlights include:
- Mentorship, funding, and exposure programs for women and underrepresented founders
- Support for farmers, fishermen, artisans, and small producers to integrate into global supply chains
- Provisions promoting sustainable practices and inclusive innovation
This ensures that economic opportunity reaches all corners of the entrepreneurial landscape.
Digital Trade & IP Protection: Powering the Next-Gen Economy
CETA is future-forward, featuring strong commitments to digital trade, telecom, and intellectual property rights, offering:
- Legal certainty for IP-intensive startups
- Seamless cross-border data flows
- Enabling conditions for digital-first ventures, SaaS companies, and fintechs to expand globally
Startups gain greater investor confidence, safer fundraising environments, and better protection for proprietary innovations.
Regulatory Certainty: Confidence for Long-Term Growth
Startups thrive in predictable regulatory environments. CETA ensures this with:
- Clear frameworks for contract enforcement
- Effective dispute resolution mechanisms
- Transparent and efficient compliance procedures
This helps reduce friction and gives founders the clarity needed to invest, innovate, and scale globally.
Collaboration, Incubation & Global Exposure
CETA goes beyond trade—it promotes cross-border collaboration and co-creation by providing:
- Access to innovation hubs and joint business missions
- Exposure to UK-based VCs, accelerators, and R&D partnerships
- A launchpad for joint ventures and alliances, from AI and sustainability to education and healthtech
These pathways foster shared innovation, global learning, and long-term business growth.
A Springboard for the Next Wave of Startup Success
CETA is tailor-made for startups. It offers:
- Lower costs and easier global expansion
- Inclusive access to new markets
- Digital and legal infrastructure for innovation
- Plug-and-play entry into global value chains
It sets the tone for a digitally empowered, startup-friendly, and inclusive trade era—fueling a new generation of global entrepreneurs from both nations.
In Summary
The India–UK Free Trade Agreement (CETA) is not just a diplomatic win—it’s a strategic launchpad for startups, MSMEs, and entrepreneurs. By unlocking markets, empowering talent, ensuring inclusion, and simplifying compliance, it offers a powerful framework for sustainable, scalable, and global business growth.
For entrepreneurs building the future, CETA is a call to go bigger, bolder, and beyond borders.
