India-U.K. FTA creates predictability for businesses on both sides: City of London policy chief
The India-UK trade deal (Comprehensive Economic and Trade Agreement, CETA) came into effect on 15 July 2026.
In a written interview, the Policy Chairman of the City of London Corporation — the governing and promotional body for the UK's financial and professional services hub — assessed the deal's implications for manufacturing, infrastructure and financial services.
The interview addressed how the agreement creates predictability for businesses on both sides and how investors can navigate changes in UK political leadership without the deal's commitments being disrupted.
The discussion highlighted financial and professional services, cross-border investment flows and regulatory cooperation as key channels through which the agreement is expected to deepen economic ties.
City of London Corporation and the UK's financial services hub
The City of London Corporation is the local governing body for the "Square Mile," the historic financial district of London, and also acts as a global ambassador for UK-based financial and professional services. It is a unique local authority with functions dating back centuries, distinct from the Greater London Authority, and plays a policy-advocacy role for the City's banking, insurance, asset management and fintech sectors. Its engagement with India-UK trade policy reflects the centrality of financial services — where the UK runs a large trade surplus with the world — to bilateral economic relations.
Key Details
- London remains one of the world's leading international financial centres alongside New York; the City of London Corporation represents this cluster's interests in trade negotiations.
- CETA's services chapter includes commitments on financial and professional services market access and mobility of professionals (e.g., contractual service suppliers, intra-corporate transferees) between India and the UK.
- A companion Double Contribution Convention on social security, effective the same day as CETA, allows employees on temporary postings to avoid dual social security contributions for up to three years.
The interview's focus on "predictability for businesses" ties directly to the treaty-based, legally binding nature of CETA commitments (as opposed to unilateral policy, which can shift with domestic political change), which is the core value proposition financial-sector investors seek.
Treaty commitments versus domestic political change
A core distinction in international economic law is that binding treaty commitments (ratified trade agreements) bind the state under international law regardless of which government is in office, unlike domestic policy which a new government can alter unilaterally. This is why investors view a ratified FTA/CETA as reducing "political risk" — commitments on tariffs, market access and investment protection persist across changes in political leadership, subject to the treaty's own amendment or exit clauses.
Key Details
- CETA is a binding international treaty under international law, distinct from a non-binding Memorandum of Understanding (MoU) or Joint Statement, which carry no enforceable obligations.
- Treaty continuity despite leadership change is a standard feature of international law (pacta sunt servanda — agreements must be kept), reinforced by each country's domestic ratification process before entry into force.
The interview's reassurance to investors about navigating UK political leadership changes reflects this legal principle — CETA's market-access and investment commitments remain in force irrespective of which UK government administers them.
Manufacturing and infrastructure market access under CETA
CETA's goods and government-procurement chapters extend beyond financial services to manufacturing and infrastructure, including tariff reductions on industrial goods (automobiles, machinery) and access to UK public procurement markets for Indian construction, infrastructure and engineering firms, alongside reciprocal opportunities for UK firms in Indian infrastructure projects.
Key Details
- Indian automobile exports to the UK benefit from tariff cuts from over 100% to 10%, subject to quota; UK exporters get reciprocal duty relief on categories like Scotch whisky and machinery.
- Government procurement chapters open UK public contracts to Indian IT, construction and medical-sector firms.
The interview's coverage of "manufacturing and infrastructure" implications reflects these procurement and industrial-goods provisions, which extend CETA's impact beyond financial services alone.
- CETA entered into force: 15 July 2026 (signed 24 July 2025).
- The City of London Corporation is the governing/promotional body for London's financial and professional services district.
- Double Contribution Convention on social security took effect alongside CETA, capping dual-contribution exposure at up to three years for posted workers.
- Target: bilateral trade to reach USD 112 billion by 2030, from about USD 56 billion.