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India-UK trade deal faces challenges amid West Asia conflict
ET Bureau | March 4, 2026 7:19 AM CST

Synopsis

India's new trade deal with the UK faces a potential hurdle. The ongoing West Asia crisis is impacting sea routes. Vessels are rerouting away from key passages. This could affect India's exports in the initial phase of the agreement. Gem and jewellery exports are also becoming costlier due to air cargo detours. The government is closely monitoring the situation.

India-UK trade deal
New Delhi: Ahead of the India-UK Comprehensive Economic and Trade Agreement (CETA) expected to come into force next month, the government is concerned about the West Asia crisis being a dampener on India's exports to the nation as vessels reroute away from the Suez Canal and the Bab el-Mandeb Strait, an official said.

Exports could be lower than expected in the first month of implementation if the sea route remains affected and those of gems and jewellery, which goes by air route, are becoming expensive due to the detour.


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