Can a bilateral trade agreement with a former colonial power be a lever for India's manufacturing ambitions? Critically examine.

In 1976, Sir Ralph Bateman led a British industrial mission to India. He offered joint ventures in offshore oil drilling and electronics, combining British technology with Indian skill [1]. Fifty years on, the India–UK CETA has been in force since 15 July 2026 [2]. It puts that logic into a rules-based framework. It can be a real lever for manufacturing, but only under certain conditions.

CETA as a lever for manufacturing

• Market access: duty-free entry for about 99% of tariff lines on Indian exports to the UK. This helps labour-intensive sectors such as textiles, leather, footwear and engineering goods [3].
• MSME integration: zero-duty access lets small firms in clusters such as Tiruppur and Kanpur join UK value chains [3].
• Technology partnership: Vision 2035 and the Technology Security Initiative cover telecom, AI and critical minerals, and lay groundwork for semiconductors [4]. This supports the PLI and Semiconductor Mission.
• Defence co-production: a 10-year Defence Industrial Roadmap [4] supports Atmanirbhar Bharat in defence.
• Changed power balance: India now has a larger economy than its former coloniser. It is negotiating as an equal, not as a dependent.

Limits and risks

• Tariffs are not competitiveness: high logistics costs, small firm size and gaps in meeting standards may stop India from using the preferences fully.
• Non-tariff barriers: the UK's planned Carbon Border Adjustment Mechanism (CBAM), due from 2027, may add compliance costs for Indian steel [5].
• Reciprocity: India has cut tariffs on 89.5% of its tariff lines [3]. This exposes sensitive domestic sectors to UK competition.
• The colonial lesson: colonial-era one-sided free trade deindustrialised Indian handicrafts. Opening up without building capability can create new dependence.
• Scale: the UK is a modest market compared with the EU or the US. It works as a gateway, not a full engine of growth.

Overall, CETA can turn the 1976 idea of complementary strengths into lasting manufacturing gains, but only if domestic reforms go with it. India should invest in logistics and quality infrastructure. It should negotiate CBAM safeguards early and channel UK investment into joint R&D. Used well, the agreement can serve a self-reliant, export-led Viksit Bharat and SDG 9 (industry, innovation and infrastructure).