by The recently signed India-UK Comprehensive Economic and Trade Agreement (CETA) has been heralded as a landmark deal, aiming to bolster bilateral trade and investment between the two nations. While the agreement promises significant economic benefits, it has also sparked concerns among various stakeholders in India. Critics argue that the deal may compromise India’s long-standing positions on key issues, potentially affecting domestic industries and public welfare.
The Issue
One of the primary concerns revolves around India’s concessions on Intellectual Property Rights (IPR). Traditionally, India has maintained a robust stance on IPR to ensure affordable access to medicines. However, the CETA includes provisions that could strengthen patent protections, potentially delaying the entry of generic medicines into the market. This shift may adversely impact India’s pharmaceutical industry and public health initiatives.
Additionally, the agreement has sparked apprehension among farmers and trade unions. The Samyukt Kisan Morcha (SKM) and ten central trade unions have announced a nationwide protest on August 13, 2025, opposing the CETA and recent U.S. tariff threats. They argue that the deal could open up India’s agricultural sector to foreign competition, threatening the livelihoods of millions of farmers.
Data and Implications
- Tariff Reductions: India will cut tariffs on 90% of UK products, including automobiles and alcoholic beverages. While this move aims to increase trade, it may also expose domestic industries to heightened competition.
- Duty-Free Access: The UK will eliminate duties on 99% of Indian exports, benefiting sectors like textiles, leather, and engineering. States such as Tamil Nadu and Gujarat are poised to gain from increased exports in these areas.
- Pharmaceutical Concerns: Enhanced IPR provisions could hinder the production of generic medicines, affecting both domestic healthcare and India’s role as a global supplier of affordable drugs.
- Agricultural Risks: The potential influx of foreign agricultural products may disrupt local markets, leading to price volatility and income insecurity for Indian farmers.
Way Forward
To address these concerns and ensure that the CETA benefits all stakeholders:
- Safeguard Public Health: India should seek clarifications and, if necessary, renegotiate provisions related to IPR to protect its pharmaceutical industry and public health interests.
- Protect Farmers: Implement protective measures and subsidies to shield the agricultural sector from adverse impacts, ensuring food security and farmer welfare.
- Stakeholder Engagement: Establish platforms for continuous dialogue with industry representatives, farmers, and civil society to monitor the agreement’s effects and make timely adjustments.
- Transparency and Accountability: Ensure that the implementation of the CETA is transparent, with regular assessments and public disclosures to maintain trust and accountability.
Conclusion
While the India-UK CETA holds promise for enhancing bilateral trade and economic growth, it is imperative to address the legitimate concerns raised by various stakeholders. A balanced approach that safeguards domestic interests while embracing global opportunities will be crucial for the agreement’s long-term success.
