Prime Minister Narendra Modi on Friday described the India-UK Comprehensive Economic and Trade Agreement (CETA) as a transformative moment in the strategic and economic partnership between the two nations.
Sharing an informative thread posted by MyGovIndia on social media platform X, PM Modi wrote, “An insightful thread, giving a glimpse of the transformative impact of India-UK CETA…”
The post, titled ‘A People’s Deal Begins Now!’, outlined the broad benefits of the newly concluded agreement, which Modi termed a ‘game-changing pact’, designed to empower Indian farmers, MSMEs, professionals, women entrepreneurs, and the youth by unlocking global markets and reducing trade barriers.
An insightful thread, giving a glimpse of the transformative impact of India-UK CETA… https://t.co/q2LXmoHDpP
— Narendra Modi (@narendramodi) July 25, 2025
Signed during PM Modi’s landmark visit to the United Kingdom, the CETA is projected to boost annual trade between India and the UK by $34 billion.
As part of the agreement, India will reduce tariffs on 90% of British products, while the UK will eliminate duties on 99% of Indian exports, covering key industries such as textiles, pharmaceuticals, food processing, automobiles, and IT services.
Strategic Benefits for India
For Indian exporters, especially in the textiles, leather, and agriculture sectors, the agreement presents a major win, granting them competitive tariff-free access in the UK market, on par with exporters from countries like Bangladesh and Cambodia.
The deal also ensures tariff parity for Indian agricultural goods with European counterparts such as Germany.
This change will significantly benefit Indian farmers, as they anticipate increased demand and earn higher profit margins on produce exported to the UK.
British Prime Minister Keir Starmer hailed the agreement as a significant success, stating, “Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses, and drive growth in every corner of the country.”
British consumers will also see lower prices on popular Indian imports, while Indian consumers will gain access to more affordable Scotch whisky, gin, luxury cars, cosmetics, and medical devices.
This FTA places a strong emphasis on inclusive growth and sustainable development, earning it widespread recognition as a ‘people-centric’ agreement.
By easing regulatory barriers and expanding trade opportunities across sectors, it aims to generate employment, drive innovation, and strengthen cooperation between India and the UK.
As India and the UK strengthen their economic and strategic ties, the India-UK CETA stands out as a major milestone—one that not only enhances bilateral trade but also reaffirms both nations’ commitment to building a more integrated, resilient, and forward-looking global economy.
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