Moves by the North of England to unlock India trade

1. At a Glance

• What it is: Mayors, businesses, SMEs and universities from the North of England went to India together under a joint "The Great North" banner. It was the first time the region did this. The aim is to turn the India–UK Comprehensive Economic and Trade Agreement (CETA) into actual trade, investment, innovation, culture and tourism links [1].
• Core idea: Opinion has moved "from agreement to action." Tariff cuts, regulatory alignment and mobility rules only create value when businesses on the ground know where and how they apply [1].
• Why UPSC cares: India–UK CETA is in force from 15 July 2026 [3][7]. It is India's flagship new-generation FTA with a developed economy, and it is linked to Vision 2035 and the Double Contribution Convention (DCC) [2][3][6].

2. Why in the News

• An op-ed in The Hindu (print, 21 Oct 2026, p. 8, International edition) reports that Northern Mayors, with SMEs and universities, travelled to India for the first time under The Great North banner [1].
• The author is Kishore Jayaraman, Group CEO of the UK India Business Council (UKIBC) and former President of Rolls-Royce, India and South Asia [1].
• The visit comes about three months after CETA and the DCC entered into force on 15 July 2026 [3][7].
• First CETA consignments worth USD 4,46,046 were flagged off from Chennai [4].

3. Background & Evolution

• May 2025: India and the UK finalised negotiations on the FTA [8].
• 24 July 2025: CETA signed in London by Piyush Goyal (Commerce & Industry Minister, India) and Jonathan Reynolds (UK) during PM Modi's UK visit [2][6].
• July 2025: India–UK Vision 2035 adopted during the same visit. Its pillars are growth and jobs; education, skills and research; critical minerals; semiconductors; and defence and security [6].
• 8–9 Oct 2025: Keir Starmer made his first official visit to India as UK PM (Mumbai). Outcomes [5][6]:
• JETCO (Joint Economic and Trade Committee) reset to support CETA implementation.

• Nine British university campuses to open in India.

• 10 Feb 2026: Double Contribution Convention (DCC) signed [3].

• Early July 2026: Rules of origin notified ahead of the rollout [9]. CBIC issued operational procedures for claiming duty concessions [10].
• 15 July 2026: CETA and DCC enter into force [3][7].
• Oct 2026: The North of England's collective "Great North" mission to India [1].

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic

• Near-total UK tariff elimination (99% of lines) helps labour-intensive Indian exports, provided exporters meet rules of origin and certification requirements [2][9][10].
• Indian firms have invested over £1 bn in the North West, supporting 6,700+ jobs. That is a base for two-way investment, not just trade in goods [1].
• Businesses only capture an FTA's value if they use it. Low awareness among SMEs is the main bottleneck the regional missions are trying to fix [1].

Geopolitical / Strategic

• CETA is the trade pillar of Vision 2035, which also covers defence, critical minerals and semiconductors [6].
• Going after sub-national markets like the North of England spreads India's engagement beyond London and the South East.

Social / Diaspora

• About 5,40,000 people of Indian origin live in the North of England. The diaspora acts as a bridge for trade, investment and cultural links [1].
• The DCC means temporary Indian workers no longer pay social security in both countries. This covers an estimated 75,000+ professionals [2][3].

Education / Human Capital

• Nine UK university campuses are due to open in India [5][6].
• Northern universities took part in the mission to build academic collaboration [1].

Governance / Administrative

• Implementation runs through JETCO and through CBIC's procedures for claiming duty preferences [5][10].
• Paradiplomacy: UK regional mayors are acting as trade promoters. The Indian parallel is states running their own investment outreach under cooperative federalism.

6. Recent Developments (last 12–18 months)

• 8–9 Oct 2025: Starmer visits Mumbai. JETCO reset; nine UK university campuses announced [5][6].
• 10 Feb 2026: DCC signed [3].
• June 2026: Government announces 15 July 2026 as the entry-into-force date [3][7].
• Early July 2026: Rules of origin notified; CBIC operational rules issued [9][10].
• 15 July 2026: CETA and DCC in force. First consignments worth USD 4,46,046 flagged off from Chennai [4][7].
• Oct 2026: First joint "Great North" mission of Northern Mayors to India [1].

7. Prelims Hooks

• India–UK CETA was signed on 24 July 2025 in London [2].
• CETA entered into force on 15 July 2026 [3].
• Signatories: Piyush Goyal (India) and Jonathan Reynolds (UK) [2].
• The UK gave tariff concessions on 99% of its tariff lines [2].
• India opened 89.5% of its tariff lines, covering 91% of UK exports [2].
• The companion social security pact is the Double Contribution Convention (DCC), signed 10 Feb 2026 [3].
• The DCC exemption from double social security contributions was extended from 3 years to 5 years, per PIB's 2026 release [3].
• The DCC is expected to benefit 75,000+ Indian professionals and 900+ companies [2].
• India–UK Vision 2035 was adopted in July 2025 [6].
• Starmer's first official visit to India as PM was on 8–9 October 2025 (Mumbai) [6].
• JETCO is the bilateral mechanism tasked with supporting CETA implementation [5].
• Nine UK university campuses were announced for India in Oct 2025 [5][6].
• The first CETA consignments (USD 4,46,046) were flagged off from Chennai [4].
• "The Great North" is the joint banner used by North of England leaders on their India mission [1].
• UKIBC stands for UK India Business Council [1].

8. Why Zero Tariffs Will Not Mean Zero Border Costs for Steel

• The UK will bring in a carbon tax at the border from 2027
• It is called CBAM (Carbon Border Adjustment Mechanism). It is a charge at the border based on how much carbon was released while making an imported good [12].
• It is expected to cover iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement first [12].

• GTRI, an Indian trade think tank, says Indian exports to the UK worth about USD 775 million could be hit [12].

• CETA has no exemption from this tax

• GTRI says India did not win any carve-out (a special exemption clause) from the UK carbon levy in the deal [12].
• So a steel exporter may pay zero customs duty under CETA but still pay a carbon charge at the same border.

• Some of the value of the tariff cut can be lost in exactly the sectors where Indian production is carbon-heavy.

• India kept a fallback option, not a solution

• An Indian official said India keeps the right to retaliate (hit back with its own measures) if the UK carbon tax hurts its exports [17].
• The Commerce Secretary said in July 2026 that the two sides are still discussing the carbon tax issue [13].
• So the issue is still open even though CETA is already in force. It was not settled at the negotiating table.

9. Why Most Indian Exporters Never Claim FTA Benefits

• India's record of using its FTAs is poor
• The FTA utilisation rate is the share of eligible exports that actually claim the lower duty.
• GTRI estimates that only 20–30% of India's eligible exports use FTA benefits. Exporters shipping into India use them at 60–70% [14].
• Experts put India's rate at about 25%, against 70–80% in developed economies [15].

• In other words, India's trade partners gain more from the same agreements than Indian firms do.

• The paperwork costs more than the duty saved

• To claim the lower duty, an exporter must prove the goods meet rules of origin (the test of where a product was really made). They do this with a certificate of origin.
• GTRI says high compliance costs are the main reason firms skip the benefit [14].

• When the foreign tariff is already low, a small firm can find the duty saving smaller than the cost of the paperwork [14].

• Small firms are hit hardest

• Experts point to low awareness among MSMEs and weak certification infrastructure across most of India's agreements [15].

• The Great North mission works on the UK side: it tells British firms where the deal applies [1]. It does nothing to make claiming easier for an Indian MSME in Tiruppur or Moradabad.

• It can be done, as Australia shows

• The India–Australia ECTA reached 77% utilisation in its first nine months [16].
• Officials blamed weak results elsewhere on a slow process for getting certificates of origin and on low awareness in industry [16].
• So the problem is not the type of agreement. It is how easy the claiming process is.

10. Reading the Op-Ed With Care

• The author speaks for the business lobby that gains from more trade
• The writer heads the UK India Business Council, a body that promotes UK–India business [1].
• His figures on the diaspora and investment are useful. But the article does not discuss costs, such as carbon tax exposure or low utilisation.

• In a Mains answer, use it as evidence of what the UK side intends, not as a neutral assessment.

• The first shipments are a symbol, not a measure of success

• The first CETA consignments from Chennai were worth USD 4,46,046 [4], a very small amount next to total bilateral trade.
• The real test will be utilisation data a year or two after the deal came into force.

11. Who Should Do What Next

• Commerce Ministry and JETCO: put CBAM on the CETA implementation agenda
• JETCO is the bilateral committee meant to support CETA implementation [5].
• Talks on the carbon tax are already under way [13]. Raising them in JETCO would tie them to the trade deal, so they do not sit as a separate climate issue.

• India's aim should be UK recognition of carbon prices paid in India, so that Indian steel and cement are not taxed twice.

• DGFT and CBIC: make claiming duty-free access cheap for MSMEs

• The cost of compliance is the main reason firms do not claim benefits [14].
• The model is the India–Australia ECTA, where high utilisation came quickly [16]. A fast, simple certificate-of-origin process should be standard for CETA.

• Publish CETA utilisation data regularly, so that gaps by sector show up early.

• Indian states: run their own version of the Great North mission

• Northern England sent mayors, SMEs and universities to India together [1].
• Indian states with large export clusters can run joint missions to UK regions in the same way. This puts cooperative federalism into practice in trade promotion.

12. Anchors for Answers

• Data: Only 20–30% of India's eligible exports use FTA benefits, against 60–70% for exporters shipping into India [14]
• Data: About USD 775 million of Indian exports to the UK are exposed to the UK carbon levy from 2027 [12]
• Report/Committee: GTRI assessments on the CETA carbon-tax gap (2025) and on low FTA utilisation (2026) [12][14]
• Comparison: India–Australia ECTA reached 77% utilisation in nine months, which shows that low use is a process problem and can be fixed [16]
• Law/Case: Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR): the rules for claiming FTA preferences at Indian customs

13. Mains Relevance

• GS-II: India and its neighbourhood / bilateral relations; agreements involving India; the Indian diaspora.
• GS-III: Indian economy; effects of liberalisation; external sector and trade agreements; investment models.
• Possible questions: 1. "A trade agreement is only as powerful as the opportunities it unlocks." Assess the India–UK CETA in the light of the shift from negotiation to implementation. (15 marks) 2. Discuss how sub-national and diaspora-led engagement can deepen India–UK economic ties under Vision 2035. (10 marks) 3. Examine the importance of social security totalisation agreements like the India–UK DCC for India's services exports and professional mobility. (10 marks)

14. Related Topics to Study Next

• India–EFTA TEPA: another FTA with developed economies that includes investment commitments.
• India–Australia ECTA / CECA: to compare tariff coverage and mobility provisions.
• India–EU FTA negotiations: the next big FTA with European partners.
• Rules of origin and CAROTAR 2020: central to actually claiming FTA preferences.
• Social security agreements (SSAs/totalisation): India's other SSAs and why they matter for IT and professional services.
• India–UK Vision 2035 and Technology Security Initiative: the strategic setting for the trade pact.
• Indian diaspora policy: the diaspora's role as an economic bridge.
• Paradiplomacy / state-level investment outreach: Indian states' parallel to UK regional missions.

15. NCERT Concepts to Revise

• Free trade agreement (Economy): CETA is an FTA; understand how members cut tariffs on most trade while keeping separate external tariffs.
• Rules of origin (Economy): Exporters can claim CETA's duty-free access only if their goods meet origin criteria notified in July 2026.
• Tariff (Economy): The deal's core is UK and Indian tariff cuts on 99% and 89.5% of lines respectively.
• Social security (Economy): The Double Contribution Convention spares temporary Indian workers from paying social security in both countries.
• Indian diaspora (Geography): About 540,000 people of Indian origin in northern England act as a trade and investment bridge.
• Comprehensive economic partnership agreement (Economy): CETA is a broad deal beyond goods, so compare it with CEPA-type pacts and avoid name mix-ups.

16. Common Errors / Trap Areas

• Name: It is CETA (Comprehensive Economic and Trade Agreement), not CEPA or ECTA. Do not mix it up with Canada–EU CETA.
• Signing vs. entry into force: Signed 24 July 2025; in force 15 July 2026. The DCC was signed separately on 10 Feb 2026 [2][3].
• Asymmetric tariff numbers: The UK figure is 99% of lines. India's is 89.5% of lines, covering 91% of trade value [2].
• DCC duration: Older sources say 3 years. The 2026 PIB release says 5 years. Use the latest official figure, but note the change [2][3].
• Source type: The Hindu piece is an opinion article by UKIBC's CEO, not a government announcement. The diaspora and investment figures come from that article [1].