India CETA: What does the UK’s biggest trade deal since Brexit deliver for British exporters?
The Business and Trade Committee will examine the UK–India Free Trade Agreement in a full day of scrutiny, hearing from major British and Indian businesses, professional services firms, the Trade Minister and the UK’s Chief Negotiator. The session will test what the UK’s biggest bilateral deal since Brexit actually delivers for British exporters - and where the trade-offs fall.
Meeting details
Outside the technical, official system of parliamentary approval of trade deals there is very little democratic scrutiny or accountability for agreements the Government negotiates. In a programme of work taking in reset negotiations with the EU, the prosperity and tech deals agreed with the US, and the India CETA, the Business and Trade Committee is stepping into that gap.
Government modelling suggests the agreement could raise UK GDP by up to £4.8 billion in the long run (0.13%). While modest in macroeconomic terms, it is the largest bilateral gain achieved since leaving the European Union. As with all trade deals, the benefits will be unevenly distributed.
Whisky and spirits could see exports to India rise by around £700 million - an increase of roughly 180%. Motor vehicle exports are projected to grow by £890 million, more than tripling current levels. Services exports are expected to see more modest gains of 8–38%, while the UK textiles and ceramics sectors may face competitive pressures due to India’s strong manufacturing advantage.
The Committee will question AstraZeneca, Pernod Ricard, JLR (owned by Tata) and the National Farmers Union on how the tariff and regulatory provisions affect their sectors - what barriers fall, what opportunities open up, and where the deal falls short. Members will also examine challenges around implementation across India’s diverse state-level regulatory landscape, and potential implications for the high product standards, animal welfare and environmental standards that the British public have come to expect.
CityUK, Deloitte, Ashurst LLP and Tech Mahindra will give evidence on impact on the UK’s globally competitive professional and business services sector - which exported £183 billion in 2024 – and on the transfer of skilled professionals between the two countries.
The Committee will then consider the likely impact of the deal on small and medium sized businesses, labour and environment standards, and UK’s Net Zero ambitions, before putting what it has heard to Trade Minister Chris Bryant and the UK’s Chief Negotiator Kate Thornley.
Rt Hon Liam Byrne MP, Chair of the Committee, said:
"Trade deals aren't just about tariffs and statistics - they're about whether British businesses can compete and win in the markets that matter. India is one of those markets. The new India FTA opens doors for our whisky makers, our car industry, our professional services.
“But it also poses hard questions about who wins, who loses and above all, will it actually make a difference in the real world?
“That's what we'll test today - not just what's on paper, but what works in practice."