India–UK Sign Comprehensive Economic and Trade Agreement

On 24th July 2025, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer to boost bilateral trade and investments.

Key Points

Tariff Elimination: Nearly 99% of tariff lines eliminated, covering close to 100% of trade value between both countries.
Duty Reductions: Tariffs cut to zero on major sectors—20% on marine products, 12% on textiles, 8% on chemicals, and 10% on base metals.
Processed Food Gains: Tariffs on 99.7% of processed food lines reduced from 70% to zero—huge boost for Indian exporters.
MSME Support: Duty-free access for sectors like leather, gems, jewellery, furniture, and sports goods—benefiting Indian MSMEs.
Farmer Advantage: Opens UK market to Indian vegetables, basmati rice, cereals, dairy, oil seeds, and beverages.
Marine Sector Access: Enables Indian entry into UK’s $5.4 billion seafood market—minimizes trade risks for fishermen.
Exporter Edge: Cities like Tirupur, Panipat, Bhadohi, and Agra get level playing field with rivals from Bangladesh and Cambodia.
Pharma Boost: Strengthens exports of generic medicines and specialty chemicals; enhances research collaboration.
Non-Tariff Barrier Resolution: Addresses Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) measures—ensuring smoother market access.