SRINAGAR: India and the United Kingdom on Thursday signed the Comprehensive Economic and Trade Agreement (CETA), ushering in a new era of bilateral cooperation under the leadership of Prime Minister Shri Narendra Modi and UK Prime Minister Sir Keir Starmer.
Signed in New Delhi by India’s Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, the agreement promises zero-duty access on 99 per cent of Indian exports to the UK and includes ambitious services and mobility commitments. Also present were External Affairs Minister Dr S Jaishankar and UK Chancellor of the Exchequer Rachel Reeves.
The trade pact provides unprecedented access for Indian labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, toys, and footwear, in a bid to boost exports and employment, particularly in MSMEs, artisan clusters, and women-led enterprises.
Billed as one of the most comprehensive FTAs signed by India with a developed country, CETA is expected to catalyse bilateral trade—currently worth USD 56 billion—with a goal of doubling it by 2030.
India secured ambitious services commitments for IT, ITeS, finance, education, engineering, architecture, and legal services—marking a first for the UK in an FTA. The agreement also eases entry norms for Indian professionals including yoga instructors, chefs, engineers, and musicians under categories like contractual service suppliers and independent professionals.
Additionally, the Double Contribution Convention (DCC) has been introduced—a significant breakthrough that exempts Indian workers and their employers from UK social security contributions for up to three years. This is expected to improve take-home salaries and lower operating costs for Indian firms.
In line with the “Make in India” and “Atmanirbhar Bharat” initiatives, the deal also emphasises inclusive trade. Provisions aim to benefit youth and women entrepreneurs, farmers, and start-ups, with focus on sustainable practices, innovation, and reduced non-tariff barriers.
Addressing the signing ceremony, Minister Goyal hailed Prime Minister Modi’s leadership for making this milestone possible. “This agreement will unlock massive opportunities for Indian industries while protecting our core economic interests. It will be a catalyst for inclusive growth and elevate India’s position in global trade,” he said.
