Archive · 25 Jul 2025
India, UK Finalize Free Trade Deal to Boost Trade
India and the UK have made a deal to trade more easily.
This means they will lower taxes on goods, making it cheaper to buy things from each other.
The goal is to make it easier for businesses to sell their products in both countries.
India will be able to sell more clothes, shoes, and gems to the UK.
The UK will be able to sell more whisky and cars to India.
They hope this will increase trade and create jobs for both countries.
India and the UK signed a Free Trade Agreement (FTA) to cut duties and boost market access.
The CETA was signed by Prime Minister Modi and Keir Starmer at Chequers Estate.
The deal aims to increase bilateral trade, potentially reaching $34 billion annually by 2040.
India will gain greater access to the UK market for textiles, footwear, and other goods.
UK exports like Scotch whisky and cars will see reduced tariffs in India.
- Who
- The agreement was signed by Prime Minister Narendra Modi and British counterpart, Keir Starmer.
- What
- India and the UK signed a Comprehensive Economic and Trade Agreement (CETA).
- When
- The agreement was signed on Thursday after three years of talks.
- Where
- The signing took place at Chequers Estate, the UK Prime Minister's country house.
- Why
- To cut duties, create greater access for businesses, and boost bilateral trade.
Benefits for India
Benefits for the UK
Tariff Reduction
Benefits for India
Reduced tariffs on Indian textiles, footwear, and jewelry.
Benefits for the UK
UK will have lower tariffs on its exports, especially Scotch whisky.
- Agreement Name
- Comprehensive Economic and Trade Agreement (CETA)
- Signatories
- India and the UK
- Expected Trade Boost
- $34 billion annually by 2040
- India's Trade with UK (2023-24)
- $53.3 billion
- India's Goods Exports to UK (2024-25)
- $14.5 billion
- Effective Date
- One year from now