- India and the UK have signed a Comprehensive Economic and Trade Agreement (CETA).
London, July 24, 2025 — India and the United Kingdom have made a significant advancement in strengthening their economic partnership by signing the Comprehensive Economic and Trade Agreement (CETA) today. The agreement was signed by Commerce and Industry Minister Mr. Piyush Goyal and Secretary of State for Business and Trade Mr. Jonathan Reynolds, with both Prime Ministers present at the event.
This Free Trade Agreement (FTA) marks a significant milestone in India’s relationship with major developed economies, demonstrating a mutual commitment to enhancing economic integration. As the fourth- and sixth-largest economies in the world, respectively, the bilateral engagement between India and the UK holds considerable global economic significance. The signing of the India-UK Comprehensive Economic Trade Agreement (CETA) follows the successful conclusion of negotiations, which were announced on May 6, 2025. Currently, bilateral trade between the two countries stands at nearly USD 56 billion, with a shared goal of doubling this figure by 2030.
CETA provides unprecedented duty-free access for 99% of India’s exports to the UK, encompassing nearly the entire range of trade goods. This development is expected to create new opportunities for labor-intensive industries, including textiles, marine products, leather, footwear, sports goods, toys, gems, and jewelry. Additionally, it will benefit rapidly growing sectors such as engineering goods, automotive components, and organic chemicals.
The services sector, a significant driver of India’s economy, is set to experience substantial benefits from the agreement. It offers improved market access in areas such as IT and IT-enabled services, financial and legal services, professional and educational services, as well as digital trade. Indian professionals, including those sent by companies to work in the UK across various service sectors—such as architects, engineers, chefs, yoga instructors, and musicians—will benefit from streamlined visa procedures and more flexible entry categories. It makes it easier for talented individuals to work in the UK.
Union Minister for Commerce and Industry, Mr. Piyush Goyal, stated: “This CETA marks a significant milestone in the trade relations between the two major economies by establishing an ambitious and balanced framework. It provides tariff-free access for 99% of Indian exports to the UK, covering nearly 100% of trade value, including labor-intensive sectors. This advancement supports the ‘Make in India’ initiative and sets the stage for bilateral trade to double by 2030.
The agreement includes ambitious commitments in both goods and services across various sectors, while also 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, thereby enhancing their competitiveness and earnings.
Overall, this Free Trade Agreement (FTA) will act as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators, while safeguarding India’s core interests and accelerating our progress towards becoming a global economic powerhouse.”
CETA is anticipated to significantly enhance trade volumes in the coming years, leading to job creation, increased exports, and fostering a deeper, more resilient economic partnership between India and the United Kingdom.
Source: Ministry of Commerce & Industry, India
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