THE UK government said its focus has “decisively shifted” from signing to delivering the Free Trade Agreement (FTA) with India as the parliamentary ratification process continues. The deal is expected to increase bilateral trade by 25.5 billion pounds by 2040.
The issue was discussed during a debate titled ‘UK-India: Comprehensive Economic and Trade Agreement (CETA)’ in the House of Lords this week.
Peers discussed the conclusions of a report by the Upper House’s International Agreements Committee (IAC) released last month.
The debate allowed parliamentarians to share their views and raise concerns about the CETA. The Minister of State in the Department for Business and Trade (DBT) said the agreement is expected to “enter into force before the end of Spring”.
“Having spoken with the officials who negotiated this agreement, now that they are leading its entry into force the focus has decisively shifted from signing to delivery, and that work is progressing apace," said Lord Jason Stockwood, the DBT minister responding to the debate on behalf of the government.
He described the CETA as a “momentous achievement” which goes beyond “India's precedent” to open the door for UK businesses.
“India will drop tariffs on 90 per cent of its lines, covering 92 per cent of current UK exports, giving the UK tariff savings of 400 million pounds per year immediately on entry into force. This will rise to 900 million pounds per year 10 years from now, even if there is no increase in trade. India's average tariff will fall from 15 per cent to 3 per cent," Lord Stockwood highlighted.
“It is worth noting that India's protectionism is not just a matter of policy; it runs deep in its national story. At independence, the burning of foreign cloth became a symbol of economic self-determination. So, when India agrees a deal of this depth, it is not just a small adjustment; it is a significant shift marking progress in the relationship between our two countries," he noted.
Presenting DBT statistics, the minister said the UK recorded 47.2 billion pounds in trade with India in the past year. This was up 15 per cent year on year and made India the UK’s 11th largest trading partner.
Some peers raised questions about India’s agreement with the European Union (EU) in January. Stockwood said the government would go through that agreement “line by line to check the mark-ups", but added that the UK had secured a “first-mover advantage”.
“Only the UK has secured access to India's 38 billion pounds federal procurement market,” he pointed out.
The debate was opened by Lord Peter Goldsmith, who chaired the IAC cross-party panel when it carried out an inquiry into the India-UK CETA after it was signed during Prime Minister Narendra Modi's visit to the UK in July 2025.
“The FTA with India is about not merely securing new market access but providing stability for businesses, diversifying supply chains and establishing a platform for sustaining strategic cooperation with an important partner," said Goldsmith.
He and other peers said there were some "missed opportunities” in the pact, noting that it was largely focused on goods and left scope for further work on services and investment facilitation.
“The real test will be in implementation — ensuring the opportunities are understood, appropriate dialogues are facilitated, small and medium-sized enterprises are supported to navigate their way through complexities and all relevant parties are engaged in helping to realise the agreement's full potential," said Baroness Usha Prashar, one of the British Indian peers who participated in the debate.
“In a world of shifting strategy and strategic balances, heightened geopolitical uncertainty and fragile supply chains, which are sorely under strain, with rising protectionism and greater polarisation between East and West, this agreement sends out an important signal,” noted Baroness Neena Gill.
The British Parliament is currently ratifying the agreement, with peers and MPs debating the CETA in both Houses before its implementation, which is expected by next month.
(With inputs from agencies)
