Examine how CETA can advance the Viksit Bharat 2047 goals while balancing concerns of domestic MSMEs.

Q. Examine how CETA can advance the Viksit Bharat 2047 goals while balancing concerns of domestic MSMEs. (15 marks, 250 words)

Signed in July 2025 and set to enter into force on 15 July 2026, the India-UK Comprehensive Economic and Trade Agreement (CETA) is India's first FTA with a G7 economy [1]. As a flagship deliverable for the Viksit Bharat 2047 vision of a developed, export-led India, it must widen market access without hollowing out the MSMEs that anchor employment.

How CETA advances Viksit Bharat 2047 - Export scale-up: duty-free access on 99% of Indian tariff lines, targeting a doubling of bilateral trade from ~USD 56 bn by 2030 [1]. - Labour-intensive gains: textiles, leather, marine, gems and toys shed the earlier 4–16% UK duties; seafood exports projected to grow ~70% [2]. - Services and mobility: UK commitments across 12 sectors, plus the Double Contribution Convention exempting Indian professionals from UK social security for up to 3 years [1]. - Strategic anchoring: signals credibility amid global protectionism.

Balancing MSME concerns - Rules-of-origin (CAROTAR) safeguards prevent trans-shipment dumping that could swamp small firms. - Sensitive lines (dairy, select farm goods) kept out; UK auto tariffs cut only in phased tranches. - Niryat Bandhu outreach by DGFT sensitising MSMEs and exporters to preferential access [1]. - Residual risks — compliance costs, quality standards (TBT/SPS), and import competition — need continued handholding.

If tariff wins are matched with credit, standards-upgradation and skilling for MSMEs, CETA becomes a template for future deals (EU, EFTA) and a genuine lever toward the 2047 developed-economy goal, embedding inclusive, sustainable growth.

(~250 words)

Sources: 1. India and UK Sign Comprehensive Economic and Trade Agreement (CETA) — PIB — 99% tariff lines, USD 56 bn baseline, first G7 FTA, services/mobility, DCC, Niryat Bandhu, entry-into-force 2. India's Seafood Industry Poised to Ride CETA Wave with ~70% Export Growth to UK — PIB — ~70% projected seafood export growth