New Delhi: India and the United Kingdom have signed a landmark Free Trade Agreement (FTA) aimed at doubling bilateral trade by 2030. Known as the Comprehensive Economic and Trade Agreement (CETA), the deal was signed in London by India’s Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds in the presence of Prime Minister Narendra Modi and his British counterpart, Keir Starmer. The agreement is seen as a major win for both nations, with wide-ranging economic, agricultural, and strategic implications.
A key highlight of the agreement is the significant benefit it brings to Indian farmers. Agricultural and processed food products such as turmeric, pepper, cardamom, mango pulp, pickles, and pulses will now enjoy duty-free access to the UK market. These products will receive more favorable treatment than exports from EU countries, thereby increasing profitability and global market presence for Indian growers. The fisheries sector in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu will also gain, with seafood exports such as shrimp, tuna, and fishmeal becoming duty-free in the UK.
To protect India’s sensitive agriculture sector, the government has ensured that items such as dairy, apples, oats, and edible oils will not face tariff concessions, shielding domestic producers from low-cost imports. On the other hand, Indian consumers will benefit from reduced import duties on UK products such as chocolates, soft drinks, cosmetics, medical devices, lamb, salmon, and cars. Notably, the tariff on Scotch whisky will be slashed from 150% to 75% immediately, and to 40% over ten years. Electric vehicle tariffs will drop from 110% to 10% within a quota.
The services sector also stands to gain. Over 60,000 Indian professionals—including IT experts, chefs, musicians, and yoga teachers—will benefit from easier access to the UK. Workers from 35 sectors can now operate in the UK for two years without the need for a local office, and Indian professionals will be exempt from UK social security contributions for three years. The deal will also support Indian graduates and freelancers in gaining career opportunities abroad.
The UK will benefit through tariff cuts on 90% of Indian goods, with 85% of them becoming tariff-free within a decade. British businesses will gain broader access to India’s public procurement market, with the ability to bid on non-sensitive government tenders worth over ₹2 billion. This opens up access to nearly 40,000 tenders annually, worth over ₹4.09 lakh crore. The UK expects the trade pact to create more than 2,200 jobs, raise wages by £2.2 billion annually, and reduce prices on consumer goods such as clothes, shoes, and food items.
In addition to trade, the two leaders discussed security and geopolitical issues. Prime Minister Modi thanked the UK for its support following the Pahalgam terror attack and emphasized the need to jointly combat terrorism, extremism, and radicalisation. India shared its concerns about the growing activities of extremist groups threatening its diplomats and leaders, and received assurances of cooperation from the UK. Both countries also discussed illegal migration, with India reiterating its zero-tolerance stance and commitment to work with UK authorities on repatriation efforts.
During his visit, Prime Minister Modi was hosted by Prime Minister Starmer at the historic Chequers Estate, where the two leaders shared tea in a symbolic “Chai Pe Charcha” and interacted with young cricketers. Modi also gifted a signed bat from the Indian T20 World Cup-winning team and admired the Premier League trophy on display, highlighting the shared cultural passion for sports between the two countries.
Following the UK visit, PM Modi is scheduled to travel to the Maldives at the invitation of President Mohamed Muizzu, in what is being viewed as a diplomatic reset following recent strains in bilateral relations.
Describing the trade deal as a “blueprint for shared prosperity,” Prime Minister Modi said it will reduce the cost of doing business and increase global confidence in India-UK economic relations. Prime Minister Starmer hailed it as the most significant trade deal the UK has signed since leaving the European Union, adding that it would bring jobs, growth, and lower prices for British consumers. With this historic agreement, India and the UK have laid the foundation for a deeper strategic and economic partnership that promises lasting benefits for both nations.
