India-UK CETA Delivers Economic Momentum as Global AI Shift Moderates Tech Services Growth

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Three months after implementation, the India-UK Comprehensive Economic and Trade Agreement (CETA) is delivering measurable long-term economic gains, validated by a high-level British trade mission visiting India. Official UK modelling projects an annual boost of £25.5 billion in bilateral trade, generating significant GDP gains for both nations. However, India’s services exports experienced a marginal 0.87% year-on-year decline in September to $36.35 billion due to muted growth in IT and software services. Industry experts attribute this slowdown to cautious spending by Western clients, geopolitical conflict along trade corridors, and AI-driven automation reducing billable hours for routine software maintenance. Despite these short-term headwinds, cumulative services exports during April–September reached $216.31 billion, reflecting an overall 8.7% growth.

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