UK-India: Comprehensive Economic and Trade Agreement

Baroness Gill Excerpts

Wednesday 4th March 2026 Grand Committee

[Baroness Gill (Lab)]

My Lords, it is with great pleasure that I take part in this debate. I welcome this landmark comprehensive trade agreement between the United Kingdom and India, and I thank the International Agreements Committee for its work under the leadership of the noble and learned Lord, Lord Goldsmith, on this excellent report.

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. It demonstrates not only that this Government are committed to being outward and forward looking but that they are serious about deepening relationships with growing economies and creating partnerships with like-minded democracies.

As we have already heard, India is the fastest-growing major economy globally, but it is not simply a large market. It is a powerhouse in the region and a technology power—one that is likely to be an engine of growth in the decades ahead. Strengthening our relationship is both commercially sensible and strategically wise. The economic rationale alone is compelling. Bilateral trade between the UK and India now exceeds £40 billion annually, spanning goods and services. Therefore, our ongoing dialogue must be dynamic—a living platform, as we have already heard, that evolves as India’s global economic footprint expands.

For Britain’s communities, in particular among the British-Indian diaspora—I speak on behalf of those in Birmingham, in Leicester, in London and elsewhere in the country—real benefits will be felt in everyday life. Expanded trade promises lower prices, greater consumer choice and more resilient supply chains for essential goods. I believe that the benefits will be tangible and wide-ranging for us both. For our small and medium-sized enterprises, which were referred to earlier and are the backbone of the British economy, this will mean tariff reductions and simplified customs procedures. Access to Indian public procurement will open up opportunities in a market of 1.5 billion people.

Having said that, I agree with your Lordships that we must recognise that SMEs will not be able to utilise these opportunities without extensive support, including clear guidance, understanding procedures and targeted facilitation to transform potential into real trade and innovative outcomes. Many of us have worked over there and have a deep understanding of the different business environment, appreciating the complex relationship between trade bodies and decision-makers there. The onus must be on our trade bodies, especially the regional ones, to step up and support our SME organisations. That will lead to the maximisation of the benefits for businesses and households.

My old friend, Nobel laureate Amartya Sen, observed that development requires the expansion of human freedom and capabilities. In this context, trade is not merely a financial exercise. It is about enabling people, ideas and knowledge to circulate freely. The modern economy rewards ideas as much as goods. Artificial intelligence, digital services and advanced manufacturing are reshaping global markets and value chains. This agreement has the potential to strengthen the living bridge between the two much further. Diaspora entrepreneurs, professionals and families who span the UK and India are not merely observers of policies. They need to be active participants in sustaining long-term economic and cultural growth.

I believe that this has to be the beginning of a broader road map—one that deepens co-operation on advanced technologies, green finance, skills recognition and innovations that will lead to SMEs participating fully. If we want to ensure that this agreement is truly forward looking, it must create structured pathways for joint research, co-innovation and regulatory dialogue sooner rather than later.

I say this because of India’s subsequent agreements with the European Union, which I championed for many decades while I was in the European Parliament. They had years to work out that relationship; we had a very short window to work on this agreement. India is demonstrating that it is ready to expand its trade agreement and look at other areas. A couple of days ago, India and Canada struck a range of accords, including a 10-year nuclear energy deal and deals on technology, critical minerals, space, defence and education. We need to follow this.

I encourage the Government to contemplate how this agreement could evolve over the coming decade. For example, there has been considerable debate in this House about AI. Successive offshoots of this agreement could promote a more structured collaboration on emerging technologies, especially AI, in a way that supports ethical standards, fosters SME innovation and deepens people-to-people exchanges across universities and industry. I ask the Minister what concrete mechanism the Government will put in place to ensure that this agreement becomes a platform for not just trade but shared innovation, professional mobility and AI collaboration, turning this vision into tangible benefits for businesses, communities and the next generation of innovators.

To conclude, I once again congratulate everyone involved in bringing about this CETA. As the noble and learned Lord, Lord Goldsmith, rightly said, it is no mean feat to get this with India. I commend the Government for the speed with which they have built this strong foundation for a durable strategic partnership with India. Our focus and ambition should be that this comprehensive agreement is of lasting value, measured not merely by trade figures but by how it has strengthened ideas, skills and human connections, ensuring that we have jointly created a resilient, strategic and enduring partnership.