India-UK CETA will boost sourcing of textiles, food from Telangana, help attract more GCC countries

IT and Industries Minister D. Sridhar Babu with British Deputy High Commissioner to Karnataka and Deputy Trade Commissioner for Investments in South Asia Chandra Iyer during a meeting in Hyderabad on Thursday. | Photo credit: Arrangement

The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect on July 15, is expected to boost demand for textiles, agricultural products, spices and seafood from the Telugu states, besides prompting several British firms to consider setting up global capacity centers in Hyderabad, two senior officials said.

The textile belts in Warangal and Mangalagiri have benefited as, in addition to demand from the Indian diaspora, global fashion houses in the UK are likely to start receiving many of the traditional fabrics and textiles from the region, Deputy Head of Inward Investment for South India and Deputy Head of the British High Commission in Hyderabad, Siddharth Vishwanathan said. Major UK retailers from Marks and Spencers and Tesco are likely to gain more after CETA cuts tariffs. From garments, jewellery, textiles to leather, the purchase of a range of products from India will increase, said British Deputy High Commissioner for Karnataka and Deputy Trade Commissioner for Investment in South Asia Chandra Iyer.

Pharmaceuticals and life sciences gain with tariff cuts. The deal will also open up prospects for UK drugmakers looking to sell in India, Mr Iyer said, adding that the trade deal is a win-win enabler and creates a sense of optimism and positivity. In addition to improved sourcing from India, many British products, from cosmetics to confectionery, will be available in India under the deal, he said.

Mr. Vishwanathan added that for the Indian pharmaceutical industry, CETA is not only about exports but also about R&D cooperation. Precision engineering, particularly in defense and aerospace, is another area where greater cooperation is expected. Asked about immigration, he said India is one of the biggest recipients of British visas. “We also agreed on a special type of visa… (under which) 1,800 visas will be available annually for chefs, yoga teachers and classical musicians.”

The delegation led by Mr. Iyer also met IT and Industries D. Sridhar Babu and highlighted the role of state governments in creating awareness about the agreement.

In a meeting report, the Minister’s office said Mr. Sridhar Babu said that Telangana offers favorable conditions for investment in industrial manufacturing, life sciences, aerospace, defense, IT, semiconductors, chip design and electronics. CETA presents an opportunity to significantly increase exports to the UK from the current ₹3,553 crore.

Published – 17 Jul 2026 0:25 AM IST