India and the United Kingdom have signed a Comprehensive Economic Trade Agreement (CETA), marking a major step towards strengthening their economic partnership.

The agreement was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds on Thursday (July 24, 2025) in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.

The signing of the India-UK CETA follows the successful conclusion of negotiations announced on May 6, 2025. The bilateral trade between the two countries currently stands at nearly USD 56 billion, with a joint goal to double this figure by 2030.  

 “Today marks a historic milestone in our bilateral relations. I am pleased that, after years of dedicated efforts, the Comprehensive Economic and Trade Agreement between our two countries has been concluded,” said Modi while delivering a joint press statement with Starmer at Chequers, the British Prime Minister’s country residence in Buckinghamshire.    

CETA provides unprecedented duty-free access for 99 percent of India’s exports to the UK, covering nearly the entire trade basket. The agreement is expected to unlock 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.

Modi noted that the agreement would particularly benefit India’s youth, farmers, fishermen, and the MSME sector.

“On the other hand, UK-made products such as medical devices and aerospace components will become more accessible and affordable for Indian consumers and industries,” he added.

Following the signing, the two leaders held a meeting with business leaders from both countries across key sectors such as health, pharmaceuticals, gems and jewellery, automobiles, energy, manufacturing, telecom, technology, IT, logistics, textiles, and financial services. These sectors are significant contributors to employment and inclusive economic growth in both countries.

During the interaction, the prime ministers encouraged business leaders to realise the full potential of opportunities flowing from the CETA for deepening trade, investment and innovation partnerships.

Business leaders from India and the UK hailed the historic trade agreement and expressed optimism that it will usher in a new era in the Comprehensive Strategic Partnership and deepen collaboration not only in trade and economy, but also in emerging technologies, education, innovation, research and health sectors.

As part of the broader bilateral vision, both sides unveiled the ‘India-UK Vision 2035’, a reworked and extended cooperation framework replacing the earlier ‘Roadmap 2030’.

Additionally, the two sides have reached a consensus on the Double Contribution Convention, which will come into effect alongside CETA. This will facilitate professionals and the service industry in both countries by promoting competitiveness and reducing the cost of doing business for commercial entities.

India has secured a provision that exempts Indian professionals and their employers from social security payments in the UK for up to three years, enhancing the cost competitiveness of Indian talent.

The two leaders also welcomed the finalisation of a Defence Industrial Roadmap, aimed at fostering collaboration in co-design, co-development, and co-production of defence products to meet domestic and global demand.

CETA is expected to significantly boost trade volumes in the coming years, create jobs, expand exports, and support a deeper, more resilient economic relationship between India and the United Kingdom.