Historic Agreement Sealed; India & UK Sign CETA!

 

Unlocks India’s export opportunity, including gem and jewellery 

India and the United Kingdom have taken a major step in building a stronger economic partnership with the signing of the Comprehensive Economic and Trade Agreement (CETA) under the visionary leadership of Prime Minister Shri Narendra Modi. 

In the presence of Prime Minister Shri Narendra Modi, UK Prime Minister Keir Starmer, the agreement was signed by Commerce and Industry Minister, Piyush Goyal and Secretary of State for Business and Trade, Jonathan Reynolds. Dr. S. Jaishankar, Minister of External Affairs and Rachel Reeves, Chancellor of the Exchequer were also present. 

This FTA marks a significant milestone in India’s engagement with major developed economies and reflects a shared commitment to strengthening economic integration. As the world’s fourth and sixth largest economies respectively, India and the UK’s bilateral engagement holds global economic significance. The signing of the India-UK CETA follows the successful conclusion of negotiations announced on 6th May 2025. The bilateral trade between the two countries stands at nearly USD 56 billion, with a joint goal to double this figure by 2030.

CETA secures unprecedented duty-free access for 99% of India’s exports to the UK, covering nearly the entire trade basket. This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals.

The services sector, will benefit from simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK. Union Minister for Commerce and Industry, Piyush Goyal, conveyed profound gratitude to the Prime Minister Shri Narendra Modi for his visionary leadership and resolute commitment, which have been instrumental in achieving this historic agreement. He stated:  

“This CETA marks a milestone in the trade relations between two major economies, setting an ambitious and balanced framework. It unlocks tariff-free access on 99% of Indian exports to the UK, covering nearly 100% of trade value- including labour-intensive sectors advancing the ‘Make in India’ initiative and setting the stage for bilateral trade to double by 2030. 

It includes ambitious commitments in goods and services, covering various sectors, while enhancing mobility for Indian professionals by simplifying access for contractual service providers, business visitors, and independent professionals.

 The innovative Double Contribution Convention will exempt Indian workers and their employers from UK social security contributions for three years, boosting competitiveness and earnings.  

This FTA will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India’s core interests and accelerating our journey towards becoming a global economic powerhouse.” CETA is expected to boost trade volumes significantly in the coming years, creating jobs, expanding exports, and supporting a deeper, more resilient economic relationship between India and the United Kingdom.