In a historic move, India and the United Kingdom have officially signed a Comprehensive Economic and Trade Agreement (CETA) during Prime Minister Narendra Modi’s visit to the UK on 24th July 2025. This deal marks India’s first full-scale free trade pact with a major Western nation and is expected to significantly boost trade, jobs, and investment.
Under the agreement, 99% of Indian exports to the UK will now be duty-free, covering key sectors like textiles, pharmaceuticals, seafood, leather, and gems & jewellery. Gujarat alone is expected to benefit massively, with seafood exports projected to grow by 70%, and diamond exports likely to double in the coming years.
The UK will also benefit, with tariffs on British goods like whiskey, automobiles, and machinery reduced significantly — some from 15% to just 3%. However, India has smartly protected sensitive sectors such as dairy, cereals, electronics, and gold, ensuring a fair balance between global trade and domestic interest.
Commerce Minister Piyush Goyal hailed the deal as “game-changing,” describing it as a major step toward India’s goal of becoming a ‘Viksit Bharat’ (Developed India). UK leaders also praised the deal, which is expected to add £4.8 billion to the UK economy annually and unlock £6 billion in bilateral investment.
Startups are also set to gain, with better access to UK markets and smoother visa pathways for skilled professionals. However, the agreement will still need ratification by both countries’ parliaments, so it may take up to a year to be fully implemented.
Stay tuned to Thangnews24.com for further updates on this landmark trade partnership.