Trade Ministers Praise New CEPA as Catalyst for Investment and Supply Chains

Both the Indian Ministry of Commerce and the UK Department for International Trade released joint statements praising the newly operational CEPA as a catalyst for deeper investment linkages and resilient supply chains. Officials highlighted that the agreement sets out transparent customs procedures, mutual recognition of standards and streamlined regulatory approvals.

According to the ministers, these provisions will reduce transaction costs for businesses and make it easier for companies to establish cross‑border production networks. The anticipated effect is a more robust, diversified supply chain that can adapt to global disruptions.

Analysts forecast that the CEPA could lift the share of Indian goods in the UK market from the current 5‑7 percent to 10‑15 percent within four to five years, translating into an incremental trade value of around $500 million annually. The agreement also includes provisions for greater aviation and maritime connectivity, urging governments to grant additional landing rights and port slots to accommodate increased traffic.

Sectoral leaders from textile, handicraft, pharmaceutical, and gem‑stone industries echoed these expectations, stressing that the predictable duty‑free environment will encourage them to scale up production, explore joint ventures and invest in technology upgrades to meet British quality benchmarks.