UK-India: Comprehensive Economic and Trade Agreement

Lord Ahmad of Wimbledon Excerpts

Wednesday 4th March 2026 Grand Committee

[Lord Ahmad of Wimbledon (Con)]

My Lords, it is a privilege to speak about the CETA signed between the United Kingdom and India. It would be remiss of me not to acknowledge the vital work of the committee and the stewardship and leadership of the noble and learned Lord, Lord Goldsmith. I appeared before it a few times as a Minister and know the thoroughness of his and the committee’s work.

The bringing forward of this agreement demonstrates a real renewed partnership, not merely on commerce but with real conviction about trade flows and shared democratic purpose. The story of the United Kingdom and India is in many respects the story of two great democracies—the oldest and the largest—rediscovering one another in the modern changing world. When the United Kingdom left the European Union, we spoke of forging a truly global Britain, outward looking, confident and anchored in strategic partnerships. Few relationships were more central to that vision than our new partnership with India.

India stands as one of the world’s fastest-growing major economies. By 2030, it is forecast to be the third- largest economy. It is a technology powerhouse and a critical geopolitical actor not just in the Indo-Pacific but globally. Its trajectory is unmistakable. Under the leadership of Prime Minister Narendra Modi, it has pursued economic reform, infrastructure expansion and digital transformation at immense scale. For the United Kingdom, securing a comprehensive trade agreement with India was not optional, but essential.

During my tenure as the United Kingdom’s Minister of State at the FCO and the FCDO, I was honoured to serve as the Minister responsible for our relationship with India. I had the privilege of working with many Indian counterparts, and I pay tribute to Foreign Minister Dr Jaishankar, many business leaders and stakeholders across our two countries who deepened this relationship. I witnessed first-hand the enormous opportunity and the intricate sensitivities that shape negotiations of this magnitude. The CETA, although ambitious in scope, aimed to reduce tariffs, ease market access, strengthen intellectual property protections, facilitate services trade and create a framework for investment. For the UK, it opened doors for our financial services. More work was needed but, nevertheless, it made progress on legal and professional services, advanced manufacturing, life sciences and education. For India, the agreement offered preferential access to a high-value market, collaboration in technology and a platform to scale its export industries.

One of the most significant elements of the agreement was tariff reduction. India historically maintains higher average tariffs than many advanced economies. Securing phased reductions in each sector, be it Scotch whisky or medical devices, was a tangible achievement. Equally important was expanding access for UK services, an area where Britain has a clear competitive advantage. Financial services, fintech innovation and regulatory dialogue were central pillars of our approach. Mobility is also key. Facilitating easier movement was a modern character of trade, not simply goods crossing borders but talent and innovation. The UK-India migration and mobility partnership, signed in 2021 by the Conservative Government in which I served, complemented the economic framework for this sustainable trade growth.

Yet any serious reflection, as we have heard from the noble and learned Lord, Lord Goldsmith, requires honesty. There are areas where the agreement could have been strengthened further in the United Kingdom’s favour. First, deeper liberalisation in legal and financial services would provide greater certainty for British firms operating in India. Secondly, stronger commitments on intellectual property enforcement would have further protected British innovation. Thirdly, public procurement access represented an area where greater mutual benefit would have benefited both India and the UK. Ensuring transparent and open bidding processes for foreign firms also continues to be a vital objective. Fourthly, tariff elimination timelines in certain sectors, notably automotive and spirits, might have been accelerated further. Phased reductions were pragmatic, but swift implementation would have delivered earlier gains for UK exporters. Finally, while mobility provisions were meaningful, achieving broader recognition of professional qualifications could have strengthened the agreement’s long-term impact.

However, I accept that trade agreements are not drafted and crafted in a vacuum. They are forged in the backdrop of political realities, domestic sensitivities and strategic calculations on both sides. India negotiates trade agreements carefully—cautiously at times. It weighs sovereignty and development priorities carefully. Understanding that perspective was essential for the United Kingdom to make progress. Between 2019 and 2024, my role was not simply to advocate for British interests but to build trust, engaging with Indian Ministers, not just in Delhi but across states. With industry leaders I worked to elevate the trade dialogue to a strategic level and was delighted in this venture for several years to be accompanied through sharing a room and on the world stage with my noble friend Lord Johnson, whom I look forward to hearing from shortly. We established structured dialogues, enhanced ministerial-level engagement and deepened parliamentary links. Crucially, we sought to frame the agreement as mutually—and that is crucial—transformative. For Britain, it was about growth, jobs and global reach. For India also, it was about partnership with a trusted friend and democracy, offering world-class services and innovation. By aligning our collective strategic narratives, we created the political space for compromise and agreement.

The CETA must also be viewed in the wider geopolitical context. At a time of immense global uncertainty, supply chain fragility—as we heard from the noble Baroness—and intensifying strategic competition, strengthening ties between two major democracies sends a powerful message. Economic interdependence can reinforce strategic alignment. Trade builds resilience.

Looking ahead, as we have heard from the noble and learned Lord, Lord Goldsmith, and the noble Baroness, Lady Gill, the agreement should be seen not as an end point but as a foundation. Trade deals are living instruments; they require continuous review. There is scope to deepen this co-operation through digital trade co-operation, green technology partnerships and collaboration in critical minerals, advanced manufacturing and, indeed, AI. The CETA between the United Kingdom and India represents a landmark agreement in modern bilateral relations. It reflects ambition, pragmatism and shared democratic confidence. It delivers tangible economic benefits while strengthening strategic ties.

For my part, serving as Minister of State with responsibility for India was a great honour of my service, helping to shape a partnership between two nations—one nation of my parents’ birth with a nation of my own, bound by history yet oriented firmly towards the future. That is the work of lasting consequence. The United Kingdom and India are not simply trading partners; we are democratic allies, innovation collaborators and global stakeholders. This agreement is not merely about commerce but shared confidence: confidence in our open markets, confidence in our shared values and confidence in a future built together.