India and UK Forge Historic Economic Partnership Through Comprehensive Trade Agreement

India and the UK have signed the Comprehensive Economic and Trade Agreement (CETA), marking a historic step in strengthening bilateral ties. The deal offers duty-free access for 99% of Indian exports, benefiting sectors such as textiles, gems, and engineering. It also enhances opportunities in services like IT, finance, and education while simplifying visa processes for Indian professionals. The agreement promotes inclusivity, supports MSMEs, and exempts Indian workers from UK social security contributions. CETA aims to double bilateral trade by 2030, fostering economic growth and innovation.

India and the United Kingdom have taken a pivotal step toward fortifying their economic ties with the signing of the Comprehensive Economic and Trade Agreement (CETA). The landmark deal, signed under the visionary leadership of Prime Minister Narendra Modi, was formalized by Commerce and Industry Minister Piyush Goyal and the UK's Secretary of State for Business and Trade, Jonathan Reynolds. This historic event unfolded in the presence of the two nations’ Prime Ministers, underscoring its global significance.

A Landmark in Bilateral Engagement

The CETA represents a major milestone in India’s growing collaboration with developed economies and reaffirms the shared resolve of both nations to deepen economic integration. As the world’s fourth and sixth largest economies, India and the UK wield significant influence on the global economic stage. This agreement, following the successful conclusion of negotiations on May 6, 2025, aims to transform the bilateral trade landscape, which currently stands at approximately USD 56 billion. Both countries have committed to doubling this figure by 2030, reflecting the ambitious scope of the partnership.

Expanding Trade Horizons

One of the most groundbreaking aspects of the agreement is the unprecedented duty-free access granted to 99% of India’s exports to the UK. This comprehensive coverage spans critical sectors such as textiles, marine products, leather, footwear, sports goods, gems, and jewellery, as well as emerging industries like engineering goods, auto components, and organic chemicals. By reducing trade barriers, CETA is set to open new markets and opportunities for India’s labour-intensive and growth-driven industries.

Services Sector Gains

The services sector, a cornerstone of India’s economy, stands to benefit significantly from the agreement. Enhanced market access in domains such as IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade is among the highlights. Indian professionals, including architects, engineers, chefs, yoga instructors, and musicians, will find it easier to work in the UK thanks to simplified visa processes and liberalized entry categories. This streamlined mobility will not only boost India’s talent export but also enhance the global competitiveness of Indian businesses.

Exemptions to Boost Competitiveness

A standout feature of the agreement is the Double Contribution Convention, which exempts Indian professionals and their employers from UK social security contributions for up to three years. This measure enhances the cost-effectiveness of deploying Indian talent abroad, making Indian professionals more competitive in the global market.

Inclusive Growth and Innovation

The CETA has been thoughtfully designed to promote inclusivity in trade. Women entrepreneurs, youth, farmers, fishermen, startups, and MSMEs are among the key beneficiaries. By providing access to global value chains and encouraging sustainable practices, the agreement paves the way for equitable economic growth. Provisions aimed at reducing non-tariff barriers and fostering innovation further amplify the potential impact of this trade deal.

Leadership and Vision

Union Minister Piyush Goyal expressed his gratitude to Prime Minister Narendra Modi for his unwavering commitment to realizing this transformative agreement. Highlighting the benefits of CETA, Goyal remarked that the agreement establishes a robust framework for trade relations between two major economies, unlocking tariff-free access for nearly all Indian exports to the UK. He emphasized that the deal supports the "Make in India" initiative, fosters job creation, and benefits a wide range of stakeholders, including farmers, artisans, MSMEs, startups, and innovators.

A Catalyst for Growth

The India-UK CETA is poised to significantly boost trade volumes, create new employment opportunities, and strengthen the economic bonds between the two nations. By fostering deeper collaboration and addressing the needs of diverse stakeholders, the agreement lays the foundation for a resilient and dynamic economic partnership.

As India and the UK embark on this new chapter of economic cooperation, the Comprehensive Economic and Trade Agreement is expected to serve as a catalyst for inclusive growth, driving both nations closer to their shared vision of global economic leadership.

Key Highlights from the Prime Minister's Remarks in London:

A Historic Milestone

1. "Today is a landmark moment in our partnership. After years of dedicated effort, India and the UK have officially signed the Comprehensive Economic and Trade Agreement (CETA)."

2. Not Just an Economic Pact

   "This is more than an economic agreement—it’s a blueprint for shared prosperity. Indian industries such as textiles, footwear, gems, jewellery, seafood, and engineering goods will now enjoy enhanced access to the UK market, unlocking immense opportunities."

3. "The agreement is set to empower our youth, farmers, fishermen, and MSMEs. At the same time, affordable access to UK-made products, including medical devices, will benefit Indian consumers and industries alike."

4. "India's agricultural and processed food industries will find expanded avenues in the British market, opening new vistas for our producers."

United Against Terrorism

5. "India and the UK stand firm in rejecting double standards in the fight against terrorism. We are resolute in our belief that extremist ideologies must never misuse the freedoms afforded by democracy."

6. "Those who exploit democratic freedoms to undermine democracy itself must face accountability."

7. "Our security agencies will enhance collaboration on critical issues, including the extradition of economic offenders, ensuring justice and security for all."

Embracing Development, Not Expansionism

8. "The need of the hour is development, not expansionism. Respect for every nation’s sovereignty and territorial integrity is essential for global harmony."

9. "We continue to exchange views on maintaining peace and stability in the Indo-Pacific, addressing the Ukraine conflict, and resolving challenges in West Asia."

Acknowledging Tragedy and Unity

10. "We extend our heartfelt condolences to the families of those, including UK nationals, who lost their lives in the Ahmedabad accident. This tragedy reminds us of the deep human connections that bind our nations."

11. The Living Bridge

    "The Indian diaspora in the UK serves as a vibrant bridge between our countries. They bring not only the flavors of curry but also the richness of creativity, commitment, and character. Their contributions extend beyond the economy into British culture, sports, and public service, showcasing the enduring bond between our peoples."