Promising Compromise: On India‑U.K. Comprehensive Economic and Trade Agreement
🟡 Introduction & Context
On 24 July 2025, India and the United Kingdom finalized a landmark Comprehensive Economic and Trade Agreement (CETA) following three years of negotiations. The deal is expected to:
Double bilateral trade to over $112 billion by 2030,
Eliminate tariffs on 99% of Indian exports to the UK and reduce duties on British goods like whisky, gin, and autos in India
The editorial lauds the agreement as a pragmatic and balanced arrangement—“promising compromise”—noting it advances economic growth while maintaining policy space on sensitive issues.
🔵 Constitutional & Policy Context (India)
India’s Constitution and strategic documents provide a framework for trade policy:
Article 301–307: Mandates freedom of trade, commerce, and intercourse, while allowing reasonable restrictions for public policy.
NEP 2020: Supports inclusive growth and MSME empowerment—reflected in CETA’s provisions for small industries and service exports.
Art. 21A: Emphasizes equitable opportunity—applies indirectly as trade income funds public education and welfare.
This agreement must align with constitutional imperatives of economic justice (Preamble), equitable growth (Directive Principles) and sovereign regulatory authority (Basic Structure doctrine).
🟢 Key Topics Covered
Market Access & Tariff Lines: Phased reduction on Indian exports (textiles, gems, agriculture) and UK imports (whisky, medical devices, autos).
Services Trade & Mobility: Visa access for Indian professionals (yoga instructors, chefs), and mutual recognition of qualifications.
MSME Boost: MSMEs to gain from zero-duty access and preferential procurement opportunities
Public Procurement & Investment: Limited UK access under safeguards; bilateral investment protection under separate treaty in the pipeline.
Risk Management: Concerns over public health due to tariff-free, processed imports (HFSS goods) and intellectual property standards.
📚 Vocabulary (English + Hindi)
| Word | Meaning (English) | अर्थ (Hindi) |
|---|---|---|
| Comprehensive | Covering all or nearly all elements | व्यापक |
| Tariff | A tax on imported/exported goods | शुल्क |
| Procurement | Process of obtaining goods/services | खरीदारी (सरकारी खरीद) |
| MSME | Micro, Small & Medium Enterprises | सूक्ष्म, लघु एवं मध्यम उद्योग |
| Quota | Fixed limit on quantities imported/exported | कोटा |
| Bilateral | Involving two parties or sides | द्विपक्षीय |
| Regulatory space | Freedom to regulate within sovereign jurisdiction | नियामक स्वतन्त्रता |
🎯 7–10 MCQs for UPSC, SSC, UPPSC & RRB
**When was the India–U.K. CETA formally signed?**
A. May 6, 2025
B. July 24, 2025 ✅
C. April 6, 2025
D. December 2024What percentage of Indian exports will receive zero import duty to the UK under CETA?
A. 90%
B. 95%
C. 99% ✅
D. 75%Which sector in India is especially expected to benefit from tariff elimination under CETA?
A. Defense
B. Textiles & Gems ✅
C. Heavy Machinery
D. Pharmaceuticals onlyWhich constitutional article mandates freedom of trade across India?
A. Article 343
B. Article 301 ✅
C. Article 350A
D. Article 19What does MSME stand for in the context of CETA benefits for India?
A. Medium, Small & Macro Enterprises
B. Micro, Small & Medium Enterprises ✅
C. Multinational Small and Micro Entities
D. Main Street Market EnterprisesWhich mobility provision is included for Indian professionals under CETA?
A. Permanent residency rights
B. 1,800 visas for professionals like chefs, yoga trainers ✅
C. Work visas for all IT professionals only
D. Student-only mobility rightsWhat is a key health concern related to tariff-free imports under the deal?
A. Increased prices
B. Surge in processed/unhealthy products (HFSS) ✅
C. Lack of variety
D. Food safety standards decline only
🧠 Importance for Aspirants
GS Paper II (IR & Trade Policy): Understanding India’s trade strategy post-Brexit, economic diplomacy with the U.K., and regulatory safeguards.
Economy & Society: Insights into MSME promotion, employment, regional export hubs (states like Maharashtra, Gujarat)
Ethics & Governance: Balance between liberal trade and public health/regulatory space.
Static + Current Affairs: Integration of Articles 301–307 with latest developments like CETA timing, benefits and concerns.
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The Hindu PDF News Analysis Notes | The Hindu PDF Download 23 July 2025 | English and Hindi