New Economic Chapter Begins with India–UK CETA Signing
On July 24, 2025, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA), marking a pivotal moment in their economic partnership. The agreement was formalised by Commerce Minister Piyush Goyal and UK Secretary of State Jonathan Reynolds, in the presence of Prime Ministers Modi and Starmer, cementing a shared vision of inclusive growth and opportunity.
Tariff Eliminations & Market Access
CETA removes duties on 99% of Indian export items, including textiles, leather, gems, and agricultural products such as mangoes and spices, while the UK agreed to phased tariff reductions on key exports like whisky, gin, cars, cosmetics, and food items. This creates a vast new market for Indian producers.
Inclusive Benefits for All
This agreement extends beyond trade, offering direct benefits to farmers, fisherfolk, tribal communities, women entrepreneurs, youth, MSMEs, and professionals. Improvements include better market access, digital trade facilitation, value chain integration, and skill development.
Services, Mobility & Social Security
CETA includes broad commitments for the services sector, easing access in IT/ITeS, finance, professional services, education, and telecom. It also introduces streamlined mobility options for yoga instructors, chefs, musicians, architects, and engineers. A notable provision is the Double Contribution Convention, which exempts Indian professionals and their employers from UK social security contributions for up to three years.
Creating Jobs & Driving Growth
Economic forecasts estimate that bilateral trade could grow by £25.5 billion (~USD 34 billion) by 2040, with the UK economy gaining approximately £4.8 billion annually. The deal aims to stimulate job creation, particularly in manufacturing, agriculture, digital services, and MSMEs, while reinforcing India’s Viksit Bharat vision.
Strategic Pathway Ahead
CETA also establishes a new strategic partnership on climate, security, defence, and innovation. Remaining steps include parliamentary approval in both countries before the agreement comes into force, expected by mid-2026.
This landmark treaty marks a historic step forward, laying a foundation for equitable trade, talent mobility, and economic upliftment across communities in both nations.
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