TNPSC Thervupettagam

India-UK Trade Compact 2025

August 21 , 2025 17 hrs 0 min 27 0
  • India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 27, 2025.
  • Also, this pact includes a dedicated chapter on digital trade.
  • The agreement recognises electronic signatures and contracts and commits both sides to work towards mutual recognition.
  • This reduces paperwork and facilitates smoother software exports.
  • The agreement commits to zero customs duties on electronic transmissions, protecting a $30 billion software export market.
  • But there is a concern that, India has limited its regulatory control by banning routine source-code inspections.
  • The UK is India’s 4th largest export market, with export growth of 25% in 2024-25 over the previous year.

 

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