Evaluate the role of next-generation FTAs in advancing India's vision of Viksit Bharat @2047.

Q. Evaluate the role of next-generation FTAs in advancing India's vision of Viksit Bharat @2047. (15 marks, 250 words)

Next-generation FTAs move beyond tariff cuts to bind services, mobility, investment and social security. The India–UK CETA, entering force 15 July 2026, is the template — India's first deal with a G7 economy [1]. Such agreements are strong enablers of Viksit Bharat @2047, yet their payoff hinges on domestic delivery.

Enabling role - Export competitiveness: CETA grants zero-duty access on ~99% of India's export lines (~100% of trade value), lifting labour-intensive MSME exports — textiles, leather, marine, gems [1][2]. Seafood exports to UK projected to rise ~70% [3]. - Services & mobility: commitments across 12 sectors, 137 sub-sectors; the Double Contribution Convention exempts ~75,000+ professionals from double social-security payment for 5 years, unlocking Mode-4 potential [1][4]. - Strategic depth: anchors India–UK Vision 2035 and India's FTA portfolio (UAE-CEPA, Australia-ECTA, EFTA-TEPA), signalling reliability to investors [5][6].

Limitations - Supply-side gaps: logistics costs, scale and quality standards can blunt tariff gains without PLI-backed cluster upgrading [2]. - Sensitive sectors face import competition; agriculture and dairy needed careful carve-outs [2]. - Rules-of-origin compliance and implementation capacity determine whether headline access converts to realised trade [1].

FTAs are necessary accelerators — not substitutes — for the manufacturing and skilling reforms Viksit Bharat demands. Harnessed with supply-side competitiveness and prudent sequencing, next-generation agreements like CETA can double bilateral trade by 2030 and embed India in resilient global value chains, advancing the 2047 goal of a developed, trade-confident economy.

(~250 words)

Sources: 1. India and the UK Unleash a Next Generation Economic Corridor — PIB, 17 Jun 2026 — entry into force 15 Jul 2026, 99% tariff lines, services scope, DCC 2. India and UK Sign CETA — PIB — labour-intensive sectors, trade-doubling target, sensitive-sector carve-outs 3. India's Seafood Industry Poised to Ride CETA Wave — PIB — ~70% seafood export growth 4. India–UK CETA Press Note — PIB — 75,000+ professionals, DCC 5-year exemption 5. India–UK Vision 2035 — PIB — strategic partnership roadmap 6. India's achievements in Free Trade Agreements 2025-26 — PIB — FTA portfolio (UAE, Australia, EFTA)