Archive · 2 Sep 2025
India-UK Trade Deal: Tariffs Slashed, Business Confidence Boosted
Imagine the UK and India are friends who want to trade goods more easily.
They've made a deal called the CETA, or the India-UK Comprehensive Economic and Trade Agreement.
This deal lowers the fees, or tariffs, that businesses have to pay to trade goods between the two countries.
These fees are going from 15% down to 3%.
This should make it cheaper and easier to buy and sell things, like clothes or food, between the UK and India.
The deal is expected to boost trade and make both countries richer.
Before it can fully start, the UK needs its Parliament to agree to it.
The agreement also includes plans for workers and social security.
The India-UK FTA aims to cut trade tariffs significantly.
The agreement is expected to increase bilateral trade substantially.
The deal should boost UK GDP and wages.
The FTA provides guaranteed market access and improves trade processes.
The UK Parliament must ratify the deal.
- Who
- UK and India
- What
- A Free Trade Agreement (FTA) that slashes tariffs.
- When
- Signed July 24, discussed in UK Parliament on Monday.
- Where
- UK and India
- Why
- To boost trade, GDP, and business confidence.
- Trade Agreement Name
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- Tariff Reduction
- From 15% to 3% on average for UK products
- Expected Bilateral Trade Increase
- 25.5 billion pounds
- UK GDP Increase
- 4.8 billion pounds annually
- Wage Boost
- 2.2 billion pounds annually
- Target for Bilateral Trade by 2030
- USD 120 billion
- Ratification Process (UK)
- Requires Parliament ratification (CRaG)