India and the United Kingdom (UK) Sign Comprehensive Economic and Trade Agreement (CETA)

India and the United Kingdom (UK) have signed the Comprehensive Economic and Trade Agreement (CETA), marking a landmark step in their bilateral economic relationship under the leadership of Prime Minister Mr. Narendra Modi. Signed by Union Minister of Commerce & Industry, Mr. Piyush Goyal, Secretary of State for Business and Trade, and President of the Board of Trade of the United Kingdom, Mr. Jonathan Reynolds, the agreement underscores both nations’ commitment to deepening economic integration. Bilateral trade currently stands at Rs. 4,83,784 crore (US$ 56 billion), with a joint ambition to double it by 2030. CETA provides duty-free access for 99% of India’s exports to the UK, offering significant benefits for labour-intensive industries such as textiles, leather, toys, marine products, and gems and jewellery. Fast-growing segments like engineering goods, auto components, and organic chemicals are also expected to benefit.
The services sector, a major contributor to India’s economy, will gain broader market access in Information Technology (IT) services, finance, education, legal services, and digital trade. Simplified visa procedures and liberalised entry rules will facilitate the movement of Indian professionals across categories such as chefs, engineers, yoga instructors, and architects. Notably, the Double Contribution Convention will exempt Indian workers and their employers from UK social security contributions for three years, enhancing talent competitiveness. Designed with inclusivity in mind, CETA also promotes access for MSMEs, startups, farmers, women and youth entrepreneurs, and artisans into global value chains. It encourages sustainability, innovation, and reduces non-tariff barriers. He described the deal as a catalyst for ‘Make in India’, boosting job creation and export growth while preserving India’s core economic interests. With this agreement, India positions itself for a more resilient and expansive role in global trade.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.