India-UK trade pact yields strong export gains in initial two months

India's merchandise exports to the United Kingdom have registered an 8% increase during the first two months of the bilateral Comprehensive Economic and Trade Agreement (CETA), while imports from the UK declined sharply by 17% during the same period.

The trade agreement provides zero-duty access for nearly 99% of India's exports to the British market, covering almost the entire trade value between the two nations. This preferential access framework was designed to bolster bilateral commerce and create new opportunities for Indian exporters across sectors.

The initial performance of the pact reflects growing momentum in India-UK trade relations, with Indian businesses capitalizing on the tariff advantages to expand their presence in the British market. The significant reduction in imports suggests a recalibration of India's import basket from UK suppliers following the agreement's implementation.

The CETA, which came into effect earlier this year, represents a major milestone in India-UK economic engagement post-Brexit. Indian exporters in sectors ranging from pharmaceuticals to textiles and engineering goods are expected to benefit substantially from the duty-free provisions over the coming months.