New Delhi, Aug. 4 -- Most reports on the recently-signed Comprehensive Economic and Trade Agreement (CETA) between India and the UK have focused on positive aspects of the agreement. But the CETA, as with any negotiated outcome, is also a compromise between the competing interests of the two countries. It is therefore important to understand the possible implications for India. Here are some key takeaways from this trade pact.

First, with the UK eliminating customs duties on almost 99% of India's exports, significant opportunities would open up for labour-intensive sectors such as textiles and clothing, gems and jewellery and leather products, which currently face 4-16% duty. This will provide an edge for these exports over competitors f...