The recently signed UK–India Comprehensive Economic and Trade Agreement (CETA) marks a historic first for India by embedding gender equality at the heart of a trade deal. With dedicated provisions to empower women entrepreneurs, boost market access, and promote inclusive growth, the pact positions gender equity not just as a social priority, but as a strategic driver of economic progress.
The intersection of trade policy and gender equality has historically been sidelined in mainstream economic discourse. Most trade agreements prioritize macro-economic indicators such as tariff liberation, intellectual property agreements and investment flows, while ignoring the differentiated impact they may have on women and men. The recently signed India-UK Comprehensive Economic and Trade Agreement (CETA), however, marks a paradigm shift by explicitly embedding gender equality objectives into its structure. This inclusion signals a progressive transformation in how trade agreements are being crafted – as instruments not just of economic exchange, but of social equity and empowerment.
The UK–India CETA’s inclusion of a dedicated ‘Trade and Gender Equality Chapter’ is unprecedented in India’s trade history as it breaks new ground by embedding gender equality into its core framework. The agreement preamble sets the tone unequivocally: it seeks “to increase women’s access to and ability to fully benefit from the opportunities created by this Agreement, including with respect to women from rural areas, marginalised communities, and economically vulnerable backgrounds.”
CETA’s trade and gender equality chapter: Empowering women entrepreneurs
The dedicated Trade and Gender Equality Chapter articulates cooperation between the UK and India to improve gender equality in trade. Key provisions include collection and exchange of gender-disaggregated data, improvement of market access for women-owned small and medium enterprises (SMEs), trade missions focused on women entrepreneurs, promotion of workplace flexibility, enhancement of financial literacy and digital readiness programs, improved access to trade finance, and sharing of best practices across both countries.
To ensure these commitments translate into tangible outcomes, CETA establishes a dedicated Trade and Gender Equality Working Group, responsible for overseeing cooperation initiatives and ensuring the implementation of gender related provisions. This commitment is further reinforced through the cross-referencing of gender priorities across other substantive chapters of CETA. Notably the chapter on SMEs promotes international trade participation led by underrepresented groups, including women. This provision holds particular significance for India, where only 26% of proprietary enterprises are owned by women whereas the contribution of women-owned Informal Micro Enterprises (IMEs) to the total number IMEs stands at 70% with many operating in traditional sectors such as khadi, sericulture, and handicrafts.
Despite recent growth driven by enabling policies and programs, studies indicate that challenges such as limited access to affordable credit, restricted market reach and gender-based mobility constraints, especially in rural areas persist. These structural challenges are most pronounced in economies like India, where women contribute significantly to informal enterprises yet remain excluded from formal trade channels. With CETA’s gender–responsive initiatives aiming to extend empowerment beyond urban centres, rural, tribal and low-income demographics will be the direct beneficiaries.
The agreement also underscores women’s inclusion in other vital sectors of the economy. Digital Trade addressed in Chapter 12 of CETA, also presents opportunities for inclusion thus recognising the systemic barriers women face in participating in digital commerce. Bilateral support via CETA can facilitate workshops for e-commerce on boarding and provide access to cross border payment infrastructure.
Innovation often overlooked in gender discourse also received attention in CETA. Women comprise less than 15% of India’s STEM workforce, limiting their participation in high growth sectors like biotechnology, renewable energy, and artificial intelligence. Knowledge sharing with UK counterparts under CETA can open mentorship pipelines and funding avenues.
The Chapter on Technical Barriers to Trade enhances inclusivity by urging national standards bodies to adopt gender responsive approaches in standard setting, in alignment with global commitments. These thoughtfully integrated measures reflect an evolved understanding of trade policy, recognising that gender equity must be interwoven across all sectors, rather than confined to isolated initiatives.
Similarly, Chapter 15 on Government Procurement advocates inclusive contracting practices. Given that public procurement constitutes a significant share of GDP in both countries, even small shifts in policy, such as incentivising contracts for women led businesses can significantly reshape their economic participation.
The Trade and Development Cooperation chapter introduces an essential dimension identifying “trade and gender equality” as a priority area for technical assistance, capacity building, and collaborative development efforts. This inclusion weaves a global development perspective into the framework, bridging trade policy with broader goals such as inclusive growth and poverty reduction. By aligning trade practices with development objectives, it underscores a progressive shift towards equity driven policy making.
Turning UK–India CETA’s gender goals into lasting impact
While the agreement’s gender framework reflects an important step forward, critical gaps and challenges remain. Foremost, the gender provisions are non-binding, lacking enforceable obligations or measurable performance indicators. This undermines accountability of both parties and risks marginalising gender objectives and goals during policy execution.
Additionally, the absence of a designated mechanism for channelling financial resources or technical assistance towards women led enterprises creates a structural barrier. Without targeted investments and capacity building support, women entrepreneurs may remain excluded from the benefits of market access and trade facilitation measures.
Another significant shortfall is the absence of guaranteed representation of women in the Trade and Gender Equality Working Group. Without inclusive governance, gender focused initiatives risk being misaligned with the realities and needs of women.
Moreover, while the need of acquiring gender disaggregated data to inform policy and practice has been argued for a long time including by the authors. Current practices across India still rely on households as the unit of analysis. This is rooted in deep cultural norms and family structures. To enable meaningful monitoring and evaluation, a context sensitive data framework will be essential.
Turning UK–India CETA’s gender goals into lasting impact
India and the UK must now transition from policy ambition to practical execution. This requires targeted investments in capacity building for women entrepreneurs, the creation of gender sensitive trade finance instruments, the development of robust data frameworks, and assurance of meaningful participation of women within trade policy institutions.
The UK–India CETA represents far more than a diplomatic milestone, it stands as a bold statement of intent, a detailed blueprint for inclusive growth, and a potential template for future trade agreements. It reflects a deepening recognition that equity in trade is not solely a moral obligation but a strategic imperative that drives sustainable economic progress.
In taking this step, the CETA has laid the essential groundwork. The challenge now is to convert the policy commitments into tangible, systemic change, transforming vision into measurable and lasting impact.
Dr. Debajit Palit is Centre Head, Centre for Climate Change and Energy Transition at Chintan Research Foundation and Dr. Mini Govindan is Senior Fellow, Social Transformation Division at TERI. Views are personal.
