VINOD BHAT
NEW DELHI, July 24: In a landmark moment for global trade and diplomacy, India and the United Kingdom today signed the Comprehensive Economic and Trade Agreement (CETA)—a historic pact aimed at transforming bilateral economic ties and unlocking vast opportunities across goods, services, investment, and professional mobility. The agreement was signed under the visionary leadership of Prime Minister Narendra Modi, alongside UK Prime Minister Sir Keir Starmer, during a high-level ceremony in New Delhi.
The formal signing was conducted by India’s Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of External Affairs Minister Dr. S. Jaishankar and UK Chancellor of the Exchequer Rachel Reeves, reflecting the strategic importance both nations attach to this sweeping agreement.
Described as a game-changing Free Trade Agreement, the India-UK CETA provides zero-duty access to Indian goods across 99% of tariff lines, covering nearly the entire trade basket. This move is expected to significantly boost Indian exports, especially from labour-intensive sectors such as textiles, leather, footwear, gems and jewellery, marine products, toys, and sports goods, thereby generating employment and empowering MSMEs, artisans, and women-led enterprises.
Bilateral trade between the two countries currently stands at around USD 56 billion, and both sides have set a joint target to double this figure by 2030. CETA is poised to serve as a powerful vehicle toward that goal by creating a predictable, liberalised, and forward-looking trade framework.
In a remarkable first, the UK has committed to ambitious services-sector liberalisation. The agreement opens the door for enhanced Indian participation in IT and IT-enabled services, financial and legal services, business consulting, education, telecom, architecture, and engineering—key engines of India’s economic strength. The services provisions also include liberalised visa and mobility pathways for Indian professionals, including contractual service providers, intra-corporate transferees, business visitors, and independent professionals such as chefs, yoga instructors, and musicians, offering smoother cross-border movement and collaboration.
One of the most notable elements of the agreement is the inclusion of the Double Contribution Convention (DCC)—a major breakthrough for Indian professionals working in the UK. Under this provision, Indian workers and their employers will be exempt from paying social security contributions in the UK for up to three years, resulting in increased take-home pay and reduced costs for Indian companies deploying talent to the UK.
Union Minister Piyush Goyal, expressing gratitude to Prime Minister Modi, called the agreement a “milestone in the evolution of India’s global trade architecture”. He said the pact would further advance the ‘Make in India’ initiative and support inclusive economic growth.
“This CETA is not only about trade figures—it is about people, progress, and partnerships,” Mr. Goyal said. “It supports our farmers, artisans, startups, and professionals. It simplifies market access, reduces trade barriers, and ensures that the India-UK partnership thrives on fairness, ambition, and mutual respect.”
Beyond tariffs and services, the agreement includes measures to support sustainable development, reduce non-tariff barriers, promote innovation and digital trade, and create platforms for startups, youth, and women entrepreneurs to tap into global value chains.
The pact is expected to generate substantial employment, stimulate innovation, and promote deeper integration of the Indian economy with global markets. Experts believe CETA will not only enhance the Indo-UK relationship but also serve as a template for future trade agreements with other major economies.
As the agreement enters into force, India stands to benefit from greater economic resilience, export diversification, and strategic positioning in global trade networks—a leap forward in its journey to becoming a global economic powerhouse.
