India, UK sign Comprehensive Trade Agreement; Industry hails it

New Delhi, July 24 (BVI) India and the UK today sealed a Comprehensive Economic and Trade Agreement (CETA) that will give “Unprecedented Market Access” to Indian goods in British market and potentially help double the bilateral commerce of 56 billion by 2030.

The agreement, reached after years of negotiations, was signed in the presence of Prime Ministers Narendra Modi and Kier Starmer by Commerce and Industries Minister Piyush Goyal and British Secretary of State for Business and Trade Jonathan Reynolds.

“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) today under the visionary leadership of Prime Minister Narendra Modi,” said an official statement by the Ministry of Commerce and Industry.

According to the government statement, the bilateral trade between the two countries stands at nearly USD 56 billion now and two nations have set an ambitious target doubling this by 2030.

Leading industry body FICCI welcomed the signing of the agreement, saying it marks a key milestone in India’s evolving trade architecture, aligning with its vision of deeper global economic integration.

Commenting on the development, FICCI President Harsha Vardhan Agarwal said, “the deal complements the objective of Atmanirbhar Bharat by empowering domestic industries to scale globally, engage competitively and leverage value chains more effectively.”

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.

This comes ahead of ongoing discussions between India and the US on the much-debated trade agreement.

According to sources, the deal between India and the UK would help India in the negotiations.

Goyal, while describing it as a “historic agreement”, said “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 free trade agreement 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, he added.

The Ministry of Commerce and Industry said that India has also secured an agreement on the Double Contribution Convention. This will exempt Indian professionals and their employers from social security payments in the UK for up to three years, improving the cost competitiveness of Indian talent.

The agreement has been designed to make trade more inclusive. Women and youth entrepreneurs, farmers, fishermen, startups, and MSMEs will gain new access to global value chains, supported by provisions that encourage innovation, promote sustainable practices, and reduce non-tariff barriers.

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, the statement said. (BVI)