India, UK Formalise Comprehensive Economic & Trade Agreement, Target Doubling Bilateral Trade By 2030

New Delhi, July 25 (KNN) India and the United Kingdom today signed the Comprehensive Economic and Trade Agreement (CETA), marking a major milestone in bilateral economic relations. 

The agreement was formally signed by India’s Commerce and Industry Minister, Piyush Goyal, and the UK’s Secretary of State for Business and Trade, Jonathan Reynolds, in the presence of Prime Minister Modi and Prime Minister Keir Starmer.

The CETA represents India’s most comprehensive trade deal with a developed economy to date and is aimed at enhancing trade, investment, and mobility between the two countries. 

The deal follows the successful conclusion of negotiations announced on May 6, 2025.

With bilateral trade currently standing at approximately USD 56 billion, the agreement sets a joint target to double trade by 2030. 

The deal grants duty-free access to 99 percent of India’s exports to the UK, covering a wide array of labour-intensive and high-growth sectors including textiles, leather, marine products, toys, engineering goods, auto components, and chemicals.

In addition to goods, the agreement provides significant openings in services—particularly in information technology, finance, legal services, education, and digital trade. 

Indian professionals working across sectors, including contractual service providers such as architects, engineers, chefs, and artists, will benefit from simplified visa regimes and liberalised entry routes.

A key feature of the agreement is the Double Contribution Convention, which exempts Indian professionals and their employers from paying UK social security contributions for up to three years, enhancing cost competitiveness and ease of mobility.

Speaking on the occasion, Minister Goyal said, "This CETA establishes a balanced and ambitious framework that expands market access for Indian goods and services while safeguarding core interests. It will strengthen MSMEs, artisans, and startups, and enhance the global footprint of India’s workforce and products."

The agreement also includes targeted measures to promote inclusive trade. 

Provisions have been included to support women and youth entrepreneurs, startups, and rural producers such as farmers and fishermen, while encouraging sustainable practices and reducing non-tariff barriers.

CETA is expected to significantly boost trade volumes, create jobs, and enhance economic resilience.

(KNN Bureau)