Proponents of the India-UK Comprehensive Economic and Trade Agreement argue that it serves as a vital engine for India's manufacturing and service sectors. By securing immediate, duty-free access to the British market for nearly 99% of its exports, India has effectively leveled the playing field for its labor-intensive industries. This is particularly crucial for small and medium enterprises (MSMEs) that have historically struggled with high tariff barriers when competing in developed markets. The agreement provides these businesses with the scale and certainty needed to expand their footprint globally.
Furthermore, the inclusion of the Double Contribution Convention is a major win for India's professional services sector. By removing the burden of double social security payments for Indian talent working in the UK, the agreement enhances the global competitiveness of Indian firms. This policy change not only reduces operational costs for businesses but also fosters deeper integration between the two economies' professional workforces. Supporters emphasize that this deal is not just about trade volumes; it is about integrating India into advanced regulatory standards and global value chains.
Finally, the agreement is viewed as a strategic success for the government's broader economic agenda. By successfully negotiating a comprehensive deal with a major developed economy, India has demonstrated its ability to protect sensitive domestic interests while simultaneously pursuing aggressive trade liberalization. This balanced approach ensures that while Indian exporters gain immediate benefits, the domestic market retains necessary protections, allowing for a sustainable transition to a more open and competitive economic environment.