India, UK Sign Historic Trade Pact: 99% Duty-Free Access for Indian Exports, Boost for Jobs, Services
New Delhi, July 25: In a landmark development, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) today, heralding a new era of economic partnership between the two countries. The agreement was formalized in the presence of Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer, with Commerce Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds signing the pact.
Key Outcomes
- 99% of Indian exports to the UK will now enjoy zero-duty access, covering nearly the entire trade value, a major boost for labour-intensive sectors such as textiles, leather, footwear, gems & jewellery, marine products, toys, and MSMEs.
- The agreement includes ambitious services commitments across IT/ITeS, financial services, education, legal, telecom, architecture, and engineering—unlocking high-value opportunities and job creation.
- Indian professionals, including chefs, yoga instructors, engineers, and musicians, will benefit from streamlined visa processes and liberalised entry norms, enhancing global talent mobility.
- A pioneering Double Contribution Convention (DCC) will exempt Indian workers and their employers from UK social security contributions for up to 3 years, increasing take-home pay and reducing cost burdens on Indian companies operating in the UK.
Commerce Minister Goyal described the CETA as a “milestone in India-UK relations”, expected to double bilateral trade from the current USD 56 billion to USD 100 billion by 2030, aligning with the goals of the ‘Make in India’ initiative.
The agreement also emphasizes inclusive trade, with specific support for women entrepreneurs, startups, farmers, artisans, and youth, and contains provisions for sustainability, innovation, and non-tariff barrier reduction.
CETA is now being seen as a model FTA, reinforcing India’s commitment to becoming a global economic powerhouse through balanced and mutually beneficial international trade partnerships.
