India–UK economic partnership: The signing of the Comprehensive Economic and Trade Agreement (CETA)

On 24 July 2025, India and the United Kingdom signed a Comprehensive Economic Trade Agreement (CETA) on during Prime Minister Narendra Modi’s visit to the U.K. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds. Both sides have released a reworked and extended cooperation framework, which has replaced ‘Roadmap 2030’ with the ‘India-U.K. Vision 2035’ framework.

Bilateral trade currently stands at Rs. 4,83,784 crore (US$ 56 billion), with the expectation to be doubled by 2030.

• CETA will provide duty-free access for 99% of India’s exports to the UK, offering significant benefits for labour-intensive industries such as textiles, leather, toys, marine products, and gems and jewellery. Fast-growing segments like engineering goods, auto components, and organic chemicals are also expected to benefit.
• The services sector, a major contributor to India’s economy, will gain broader market access in Information Technology (IT) services, finance, education, legal services, and digital trade.
• Simplified visa procedures and liberalised entry rules will facilitate the movement of Indian professionals across categories such as chefs, engineers, yoga instructors, and architects.
• Notably, the Double Contribution Convention will exempt Indian workers and their employers from UK social security contributions for three years, enhancing talent competitiveness.
• CETA also promotes access for MSMEs, startups, farmers, women and youth entrepreneurs, and artisans into global value chains.
• It encourages sustainability, innovation, and reduces non-tariff barriers.
• The deal will act as a catalyst for ‘Make in India’, boosting job creation and export growth while preserving India’s core economic interests. With this agreement, India positions itself for a more resilient and expansive role in global trade.

India and the U.K. have agreed to negotiate a reciprocal Double Contributions Convention (DCC). This agreement – when in effect will ensure that employers and employees working across borders, for a period of up to three years, will pay social contributions only in one country at a given time. The current exemption period is for one year. “The DCC previously had announced this as a part of the trade deal in the U.K , where exemptions from social security payments are politically sensitive. The DCC is legally linked to the CETA and must come into effect for the CETA to become operational” stated L. Satya Srinivas, a Ministry of Commerce bureaucrat. The Vision 2035 statement comprises several pillars: growth and jobs; technology (building on the Technology Security Initiative launched exactly a year ago); climate; defence and security. The two sides agreed to regular interaction between the two Prime Ministers and an annual review of how Vision 2035. The Indian PM Modi thanked Mr. Starmer for his support following the Pahalgam terror attack on 22 April 2025. “We are united in the belief that there is no place for double standards in the fight against terrorism,” stated Mr. Modi. He further added “We also agree that the forces which espouse extremist ideologies should not be allowed to misuse democratic freedoms. Those who misuse democratic freedoms to undermine democracy itself must be held to account”. The two countries would also enhance cooperation on the extradition of economic offenders, Mr. Modi said. The U.K. is host to several individuals who are considered economic fugitives under Indian law, including jeweller Nirav Modi, and businessmen Lalit Modi and Vijay Mallya. “We have continued to exchange views on peace and stability in the Indo Pacific, the ongoing conflict in Ukraine and the situation in West Asia,” the Prime Minister said, adding that India supported the “early restoration of peace and stability” and respect for sovereignty and territorial integrity of all countries. “Today’s era demands development, not expansionism,” he said.