Trade Deal and Sectoral Opportunities

Kerala’s Education Drive under CETA: Trade Deal’s Impact on Schools

The Comprehensive Economic and Trade Agreement (CETA) entered into force on 15 July 2026, and British Deputy High Commissioner Sutapa Choudhury highlighted Kerala’s “unique strengths” in fisheries, spices, IT, textiles, engineering and wellness during a two‑day visit to Thiruvananthapuram. In the same week, the state’s United Democratic Front (UDF) announced it would implement the Centre’s PM SHRI scheme in state‑run schools despite earlier opposition, seeking to tap central funds to address education arrears of ₹1,466 crore.

CETA removes duties on almost 99 percent of Indian exports to the United Kingdom, promising faster market access for Kerala’s traditional industries. The agreement also opens a pathway for UK universities to set up branch campuses, a demand the state government has publicly pledged to meet.

• ▸The deal grants zero‑duty entry for Kerala’s seafood, spice and textile products into the UK market.
• ▸Technopark Thiruvananthapuram, visited by the Deputy High Commissioner, is earmarked for joint R&D projects under the agreement.
• ▸Ten UK universities have signed MoUs for Indian branch campuses, but none have yet opened in Kerala.
• ▸The UK‑India trade pact is described by the Centre as “inclusive and future‑oriented,” aiming to boost bilateral trade by ₹30 billion annually.

These sectoral gains hinge on the state’s ability to align local regulations with the trade‑friendly provisions of CETA, a task that will test administrative capacity and inter‑governmental coordination.

PM SHRI Scheme: Governance and Funding

The PM SHRI (Pradhan Mantri Schools for Rising India) programme, a centrally sponsored scheme, requires states to fund 40 percent of project costs. Kerala’s decision to adopt the scheme follows a reversal from its previous stance, driven by mounting fiscal pressure and the need to modernise school infrastructure.

• ▸Kerala currently hosts 33 Kendriya Vidyalayas and 14 Navodaya Vidyalayas under the scheme.
• ▸The state’s education arrears stand at ₹1,466 crore, prompting the UDF to seek central assistance.
• ▸Under PM SHRI, each school receives up to ₹1 crore for digital classrooms, laboratories and teacher training.
• ▸The scheme mandates adherence to the National Education Policy 2020 guidelines, including multilingual instruction and competency‑based assessment.

Implementation will be monitored through the state’s education department, but the funding split raises questions about fiscal sustainability and the capacity to meet the 40 percent cost share without compromising other welfare programmes.

Constitutional Obligations and Accountability

Article 21‑A of the Constitution guarantees free and compulsory education for children aged 6‑14, while the Right to Information Act 2005 empowers citizens to demand transparency in scheme implementation. The state’s decision to adopt PM SHRI must therefore align with these constitutional mandates, ensuring that the benefits reach the intended beneficiaries without undue delay.

• ▸Article 21‑A obliges the state to provide quality education, a benchmark against which PM SHRI outcomes will be measured.
• ▸Under the RTI Act, any citizen can request details on fund disbursement, school‑level expenditure and audit reports.
• ▸The state has pledged to retain control over the syllabus, a concession that reflects the tension between central guidelines and state autonomy.
• ▸Non‑compliance with the 40 percent cost‑sharing clause could trigger legal challenges under the Right to Information Act 2005.

These provisions create a dual accountability framework: fiscal responsibility to the Centre and constitutional duty to the child citizen.

Implementation Gaps and Social Justice

While the trade deal promises market expansion, the on‑ground reality of school infrastructure and teacher shortages may dilute its social impact. Kerala’s education arrears indicate systemic financing gaps, and the reliance on centrally funded schemes risks creating a two‑tier system where better‑off schools benefit disproportionately.

• ▸Teacher vacancies in Kerala’s public schools exceed 12 percent, hindering the rollout of digital classrooms envisaged under PM SHRI.
• ▸Rural schools report inadequate internet connectivity, limiting participation in the IT‑focused components of CETA‑linked projects.
• ▸The state’s previous opposition to the scheme stemmed from concerns over syllabus control, highlighting the politicisation of curriculum decisions.