India, UK Sign Landmark Trade Pact to Boost $56 Billion Bilateral Commerce
New Delhi/London, 25th July 2025: In a significant breakthrough following over three years of negotiations, India and the United Kingdom have officially signed the Comprehensive Economic and Trade Agreement (CETA), aimed at doubling bilateral trade to over $100 billion by 2030. The deal, finalized amid a volatile global trade environment, promises sweeping tariff reductions, streamlined business visa provisions, and expanded access for professional services.
Under the new agreement, India has agreed to slash import duties on a range of UK products, including high-end automobiles, medical devices, cosmetics, and Scotch whisky — with tariffs dropping from an average of 15% to just 3%. Notably, silver, one of the UK’s top exports to India worth $2.1 billion in the previous fiscal year, is now included in the zero-duty import list.
However, the transition won’t be immediate. Duty reductions are scheduled to be phased in over a ten-year period, offering Indian industries time to adapt and remain competitive.
In return, the UK will grant zero-duty access to 99% of product lines originating from India. This includes key exports such as textiles, gems and jewellery, engineering goods, seafood, and footwear.
Calling the agreement a “blueprint for shared prosperity,” Prime Minister Narendra Modi said, “This is not just a trade pact—it’s a strategic step forward. It opens doors for Indian farmers, MSMEs, fishermen, and our dynamic youth. Our agricultural and processed food sectors will also benefit from new opportunities in the UK market.”
Crucially, the Indian government has protected several sensitive sectors from immediate tariff cuts. These include dairy products, oats, edible oils, apples, and specific seed varieties, reflecting concerns over domestic industry impact.
On the UK side, Prime Minister Keir Starmer hailed the deal as a major diplomatic and economic milestone.
“We’re navigating a complex and more dangerous global era. Strengthening alliances like this is the right way forward. Today, we mark our biggest and most significant trade deal since Brexit—our new partnership with India.”
An insightful thread, giving a glimpse of the transformative impact of India-UK CETA… https://t.co/q2LXmoHDpP
— Narendra Modi (@narendramodi) July 25, 2025
The pact also includes provisions that make visa processes more predictable for professionals and business workers, and enables audit and accounting firms from both countries to operate with fewer barriers, marking progress in services trade — a long-standing demand from both sides.
With CETA now in place, both governments are optimistic that the agreement will serve as a model for future economic cooperation and deepen the India-UK strategic relationship.
