India–UK CETA to Open New Growth Opportunities for Punjab Industry; Ludhiana Set to Benefit Significantly: CICU

Ludhiana, July 16, 2026: The Chamber of Industrial & Commercial Undertakings (CICU) has welcomed the implementation of the India–UK Comprehensive Economic and Trade Agreement (CETA), effective from 15th July 2026, describing it as a game-changing trade pact that will accelerate exports, manufacturing, investments and employment across Punjab.
Welcoming the agreement, Upkar Singh Ahuja, President, CICU, said that under the India–UK CETA, 99% of Indian exports will enjoy duty-free access to the UK market, while tariffs of up to 12% have been eliminated on 1,143 textile and engineering product lines. He added that the agreement is expected to boost India–UK bilateral trade to nearly USD 100 billion by 2030, creating tremendous opportunities for Indian manufacturers.
Ahuja stated that Ludhiana, India's leading manufacturing hub for hosiery, ready-made garments, woollen yarn, bicycle parts, auto components, fasteners, hand tools, machine tools, steel products and agricultural machinery, is among the biggest beneficiaries of the agreement. He also welcomed the flagging off of the first consignments of ready-made garments and woollen/worsted yarn from Sahnewal, Ludhiana, on the very first day of CETA's implementation, reflecting the immediate positive impact of the agreement.
He further said that the UK imports nearly USD 28.8 billion worth of textiles and apparel annually, offering huge export potential for Punjab's textile and hosiery sector. With tariff concessions across 137 engineering sub-sectors, Ludhiana's engineering, bicycle and auto component manufacturers are expected to significantly expand their presence in the UK market.
J.S. Bhogal, Senior Vice President, CICU, said that Punjab's MSMEs now have an excellent opportunity to become part of global supply chains. He emphasized that industries should focus on quality enhancement, technology upgradation and product innovation to maximize the benefits of the agreement and strengthen their competitiveness in developed markets.
The views were endorsed by the CICU Steering Committee, including Dr. S.B. Singh, Joint Secretary; Ajay Bharti, Finance Secretary; Gautam Malhotra, Vice President; Didarjit Singh Lotey, Vice President; and Nikhil Dhand, Press Secretary, who appreciated the Government of India's efforts in securing a comprehensive trade agreement with the United Kingdom. They expressed confidence that the India–UK CETA will enhance Punjab's export competitiveness, strengthen MSMEs, attract new investments, and position Ludhiana as a preferred global manufacturing hub.
Key Benefits for Punjab Manufacturers
•    Duty-Free Access to Large Markets: Nearly 99% of Indian exports will receive duty-free access to the UK, making Punjab-manufactured goods more competitive.
•    Boost to Auto Components Industry: Punjab's strong base in auto components, sheet metal parts, engineering products and agricultural machinery will benefit from enhanced export opportunities and access to global OEMs.
•    Growth for MSMEs: Ludhiana-based manufacturers of:
o    Bicycle Parts
o    Auto Parts
o    Hand Tools
o    Fasteners
o    Sports Goods
o    Textile Machinery
        are expected to witness higher export orders and production volumes due to reduced tariff barriers.
•    Increased Employment: Rising exports are expected to generate additional jobs in machining, welding, assembly, logistics and engineering, while increasing demand for skilled technicians and engineers.
•    Better Profitability: Elimination of import duties will improve price competitiveness and enable manufacturers to compete more effectively with suppliers from China, Turkey and other countries.
•    Technology & Quality Upgradation: To meet UK and European standards, industries are expected to invest in automation, quality systems, testing facilities and international certifications, strengthening long-term competitiveness.
•    Benefits for Agro & Farm Equipment Sector: Punjab's agricultural machinery manufacturers will gain easier access to the UK market, creating new opportunities for exports of farm implements and equipment.
Industries in Punjab Expected to Benefit Most
•    Auto Components – Higher exports and opportunities with global OEMs.
•    Bicycle Parts – Duty-free access to developed markets.
•    Engineering Goods – Improved international competitiveness.
•    Agricultural Machinery – Expanded export opportunities.
•    Textiles & Hosiery – Reduced tariffs leading to larger export orders.
•    Sports Goods – Better market access to UK buyers.
•    Food Processing & Basmati Rice – Easier market entry and export growth.
What Punjab Manufacturers Should Do
•    Obtain international quality certifications (IATF, ISO, CE where applicable).
•    Strengthen export marketing and overseas distributor networks.
•    Participate in international trade fairs and buyer-seller meets.
•    Utilize export promotion schemes and freight assistance available from the Punjab Government.
•    Focus on value-added and technology-driven products rather than commodity exports.
Challenges to Watch
•    Compliance with UK/EU quality and sustainability standards.
•    Competition from other Indian states and international suppliers.
•    Documentation and Rules of Origin requirements.
•    Continuous modernization and productivity improvement.
Concluding, Upkar Singh Ahuja said that the India–UK CETA marks a new chapter for Punjab's export-led industrial growth. He added that CICU will continue to organize export awareness programmes, buyer-seller meets, international collaborations and technical workshops to help industries fully leverage the benefits of this landmark agreement. J.S. Bhogal reiterated that with the right focus on quality, innovation and global standards, Punjab's manufacturers can substantially increase their presence in the UK market and strengthen India's position as a trusted global manufacturing partner.