This Free Trade Agreement (FTA) marks a major step in economic ties between two of the world’s largest economies, aiming to deepen integration. Signed after concluding negotiations on May 6, 2025, the deal aims to double the current USD 56 billion in bilateral trade by 2030.
India and the United Kingdom today signed the Comprehensive Economic and Trade Agreement (CETA), aiming to double their trade volume by 2030 and strengthen strategic economic ties. The agreement was formalised by India’s Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of both Prime Ministers.
The signing of CETA marks a major milestone in India’s engagement with developed economies and signals a shared commitment to deepen economic integration. As the world’s fourth- and sixth-largest economies respectively, India and the UK currently maintain a bilateral trade volume of nearly USD 56 billion.
CETA provides duty-free access for 99% of Indian exports to the UK, covering nearly the entire trade basket. Labour-intensive sectors such as textiles, leather, marine products, footwear, sports goods, toys, and gems and jewellery are set to benefit, along with high-growth sectors like engineering goods, auto components, and organic chemicals.
The services sector, a key driver of India’s economy, will also gain significantly. The agreement ensures broader market access across IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade. It also simplifies visa procedures and liberalises entry categories for Indian professionals working in the UK. These include contract-based professionals such as engineers, architects, chefs, yoga instructors, and musicians.
A major breakthrough in the deal is the Double Contribution Convention, under which Indian workers and their employers will be exempt from UK social security contributions for up to three years. This provision is expected to enhance the global competitiveness of Indian talent.
Speaking at the signing, Union Minister Piyush Goyal credited Prime Minister Narendra Modi’s leadership for making the agreement possible. “This CETA is a milestone that sets an ambitious and balanced framework for trade between two major economies. It provides tariff-free access on 99% of Indian exports and will help double bilateral trade by 2030. It covers both goods and services while promoting professional mobility, and includes strong safeguards for India’s core interests,” he said.
The agreement also emphasises inclusive growth. Provisions within CETA are designed to benefit women and youth entrepreneurs, startups, farmers, fishermen, and MSMEs, offering them greater integration into global value chains. It also includes measures to promote sustainability, reduce non-tariff barriers, and support innovation.
With CETA in place, both countries expect a substantial boost in trade volumes, job creation, and innovation-driven growth. The agreement is widely seen as a step forward in building a more resilient and mutually beneficial India-UK economic partnership.