🔍 Rule of Origin: A Smart Move in India–UK Trade Pact

The recently signed India–UK Comprehensive Economic Trade Agreement (CETA) isn’t just about reducing tariffs — it’s about strategic foresight. One standout clause in this pact is the "Rule of Origin", designed to prevent misuse by third countries like China and Korea.

Imagine this: A Chinese firm tries to exploit the zero-tariff route by assembling parts in India and re-exporting to the UK. CETA stops this.

📌 Here’s how:

Under the Rule of Origin clause:

A product must be wholly produced or significantly processed in India or the UK to qualify for duty-free access.

Simple assembling doesn’t count — it has to be genuine manufacturing.

This clause:

✅ Blocks dumping and assembly-based export tricks

✅ Encourages real manufacturing in India

✅ Boosts FDI — foreign firms now have incentive to produce, not just assemble

✅ Leads to job creation, tech transfer, and skill development

So instead of being a route for indirect exports, India is now positioned as a manufacturing destination. CETA’s design ensures that the benefits of global trade reach Indian factories, workers, and innovators — not just foreign middlemen.

This is a strategic step toward making India not just a market, but a global production hub.

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