Source · Select Committees · Business and Trade Committee
12th Report - UK-India Comprehensive Economic and Trade Agreement (CETA)
Business and Trade Committee
HC 996
Published 21 January 2026
Recommendations
12
Acknowledged
Ensure Responsible Business Conduct Review creates enforceable human and labour rights expectations for businesses.
Recommendation
The Government should ensure that its ongoing Responsible Business Conduct Review results in clear and enforceable expectations on UK businesses, including respect for human rights and labour rights within their supply chains. The Government should report to Parliament on the …
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Government Response Summary
The government states that the Responsible Business Conduct review will be critical to ensuring businesses operate in a way that respects human rights, labour rights, the environment, and anti-corruption measures, and will update Parliament when the review is complete.
Department for Business and Trade
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23
Acknowledged
Schedule a debate on a substantive motion for the Agreement to enable meaningful scrutiny.
Recommendation
The Committee welcomes the Government’s commitment to make time available in the House of Commons for a debate on the Agreement during the CRaG period. However, we are disappointed that the Government intends to seek only a general debate. Given …
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Government Response Summary
The government states it is grateful for the scrutiny and proactively sought a debate in both Houses on this deal to recognize the relevant committees’ respective inquiries and commitment to transparency.
Department for Business and Trade
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24
Acknowledged
Commit to making time available to debate all Free Trade Agreements in the Commons.
Recommendation
The Government should commit to making time available in the House of Commons to debate all FTAs it agrees with other countries. (Recommendation, Paragraph 118) 79
Government Response Summary
The government reaffirms its commitment to provide a debate on any new trade deal during the statutory scrutiny period (where Parliamentary time allows).
Department for Business and Trade
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Conclusions (6)
2
Conclusion
Acknowledged
The most immediate benefits are concentrated in goods sectors facing historically high Indian tariffs, particularly spirits and automotives, where the Agreement delivers commercially significant and predictable market access for the first time. The Agreement also delivers new market access in government procurement, with India opening its central government procurement market …
Government Response Summary
The government acknowledges the benefits of CETA, predicting it will boost UK GDP by £4.8bn by 2040, and that India will drop tariffs on 90% of lines.
5
Conclusion
Acknowledged
While the Agreement provides greater certainty and stability for UK services providers, it delivers limited new market access into India. The practical value of the services provisions will therefore depend largely on effective implementation, particularly progress on mutual recognition of professional qualifications. Notwithstanding the Agreement’s commitments and the establishment of …
Government Response Summary
The government states that they will identify and encourage mutually interested UK and Indian bodies to negotiate mutual recognition agreements for professional qualifications and will actively facilitate MRPQs where they are of mutual interest, but it is ultimately the regulators' decision.
7
Conclusion
Acknowledged
The Committee concludes that the Agreement does not introduce significant changes to India’s intellectual property regime that are likely to support growth in UK pharmaceutical exports. At the same time, the Committee recognises India’s role as a major producer of generic medicines and the importance of retaining some flexibility within …
Government Response Summary
The government states that the IP chapter goes beyond India's precedent in FTAs, supporting the economy through IP rights protection and enforcement. They will continue to advance this agenda through the Working Group on Intellectual Property Rights and a specialist Intellectual Property attaché in India.
9
Conclusion
Acknowledged
The Agreement locks in and modestly extends existing arrangements for mobility. The Government maintains that the provisions are limited in scope and will not have a material impact on the UK labour market. (Conclusion, Paragraph 70)
Government Response Summary
The government acknowledges that the mobility provisions within CETA apply to short-term service supply and are not expected to have a material impact on the UK's labour market.
14
Conclusion
Acknowledged
The Committee notes evidence that uncertainty during the ratification period risks delaying commercial decisions, particularly in sectors where tariff reductions under the Agreement are commercially significant. Given the absence of provisional application, timely ratification and clear communication on implementation timelines will be critical to minimising disruption for UK businesses. (Conclusion, …
Government Response Summary
HM Government will continue to update Parliament regularly on preparation, utilisation, and tariff preference uptake and will endeavour to publish provisional data on utilisation rates within the first year.
15
Conclusion
Acknowledged
Tariff liberalisation under the Agreement is commercially meaningful for key UK exports. However, long staging periods, complex rules of origin and administrative burdens risk limiting utilisation, particularly among SMEs. The Committee notes that some sectors, including textiles, ceramics and potentially dairy, may face increased competitive pressures as a result of …
Government Response Summary
HM Government will continue to update Parliament regularly on preparation, utilisation, and tariff preference uptake, will work with industry and the Government of India on concerns raised, and will establish clear and continuous feedback loops with UK businesses.