London: India and the United Kingdom on Thursday signed a comprehensive free trade agreement (FTA) projected to boost bilateral trade by an estimated USD 34 billion annually.
Officially titled the Comprehensive Economic and Trade Agreement (CETA), the pact was signed in London in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.
This landmark agreement, reached after three years of intense negotiations, eliminates tariffs on nearly 99 percent of Indian exports and dramatically simplifies market access for a wide range of goods and services. Commerce and Industry Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade Jonathan Reynolds officially signed the pact.
An insightful thread, giving a glimpse of the transformative impact of India-UK CETA… https://t.co/q2LXmoHDpP
— Narendra Modi (@narendramodi) July 25, 2025
CETA represents the most comprehensive trade agreement the UK has signed since Brexit and is expected to revolutionize trade dynamics between the two countries. For India, the deal guarantees zero-duty market access on almost 100 percent of trade value, spanning more than 99 percent of tariff lines.
Labour-intensive sectors such as textiles, leather, footwear, marine products, sports goods, toys, and gems and jewellery are expected to see a substantial boost. Emerging sectors like engineering goods, auto components, and organic chemicals are also poised to benefit.
The UK will see improved access to the Indian market for flagship exports, including whisky, automobiles, soft drinks, cosmetics, and medical devices. Average tariffs on these products will be slashed from 15 percent to just 3 percent, offering significant cost savings for British businesses and consumers.
The agreement goes beyond goods, with extensive provisions for services and mobility of professionals. Indian professionals such as engineers, chefs, yoga instructors, architects, and musicians will benefit from liberalized visa norms and streamlined entry procedures, enhancing their ability to work in the UK.
A new chapter begins today in the India–UK economic partnership! The signing of the Comprehensive Economic and Trade Agreement (CETA) reflects our shared commitment to enhancing trade, driving inclusive growth and creating opportunities for farmers, women, youth, MSMEs, and… pic.twitter.com/FUOo4dkHLU
— Narendra Modi (@narendramodi) July 24, 2025
The services sector will gain considerably through easier access and regulatory cooperation. Additionally, the two nations signed a double contribution convention, which exempts Indian employers from paying social security contributions for their employees working in the UK, reducing financial burdens and encouraging cross-border employment.
With bilateral trade surpassing USD 55 billion in 2023–24 and the UK ranking as the sixth-largest investor in India (cumulative USD 36 billion), the agreement is expected to deepen economic ties. Indian investments in the UK total around USD 20 billion, with nearly 1,000 Indian companies operating across Britain and employing close to 100,000 people.
