By Dr. Badri Narayanan Gopalakrishnan, Fellow, NITI Aayog.
The recent signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) marks a significant moment in global trade dynamics. While often framed as a mutually beneficial pact, a closer look reveals a narrative where India, with its meticulous negotiation strategy, has secured a highly advantageous deal, and the UK has, perhaps, found a much-needed anchor in its post-Brexit quest for global relevance. This deal also provides a fascinating contrast to the UK’s evolving trade relationship with the US, and India’s own cautious but strategic approach to a potential trade pact with Washington.
The UK’s Post-Brexit Urgency and India’s Strategic Leverage
It is no secret that the United Kingdom has been remarkably keen, even desperate, for this trade deal. Following the labyrinthine and often underwhelming outcomes of Brexit, the UK’s image as a formidable trading nation has taken a considerable hit. The promise of “Global Britain,” articulated during the Brexit campaign, has struggled to materialise into tangible, impactful trade agreements. In this context, the India-UK FTA represents a crucial face-saving opportunity for London, a demonstration that it can indeed forge significant partnerships outside the European Union. This underlying desperation translated into a discernible generosity from the British side during negotiations, allowing India to drive a harder bargain on several fronts.
This eagerness to secure trade deals is also evident in the UK’s recent “Economic Prosperity Deal” (EPD) with the United States, announced in May 2025. While this deal aims to reduce or remove tariffs on key exports like cars, steel, and aluminum, and offers some concessions like a quota for UK automotive imports, it notably emphasizes non-trade agendas, particularly economic security. The EPD includes provisions for cooperation on investment security, export controls, and ICT vendor security, indicating a shift towards strategic partnerships that align with US geopolitical concerns. This suggests a willingness on the UK’s part to make concessions on traditional trade areas in exchange for broader strategic alignment and a perceived “win” in its post-Brexit trade narrative. The pressure on the UK to finalize this deal quickly, driven by the threat of higher US tariffs if an agreement wasn’t reached by a specified deadline, further underscores their urgency in securing trade pacts.
One of the most striking aspects of the India-UK CETA is India’s astute handling of the UK’s persistent “green” and “social” agenda. While the UK’s trade agreements often push for stringent clauses on environmental and labor standards, the India-UK CETA, as seen in Chapter 20 (Labour) and Chapter 21 (Environment), articulates commitments primarily on a “best endeavours basis.” This is a crucial win for India, safeguarding its domestic policy space and allowing it to pursue its developmental priorities without being unduly constrained…
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We 5guruayurveda.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on. For any glitch kindly connect at 5guruayurveda.com
