Archive · 24 Jul 2025
India, UK Sign Historic Trade Deal; Set to Boost Trade and Ties
India and the UK have made a big trade deal!
It's like a deal to buy and sell goods between them, making it easier and cheaper.
This means things made in India, like clothes and jewelry, can be sold in the UK without big taxes, and vice versa.
Both countries hope to trade much more in the future.
Plus, six British universities will open in India, helping people learn.
India and the UK signed a Comprehensive Economic and Trade Agreement (CEPA) to boost trade.
The deal aims to increase trade to $120 billion by 2030 and reduce tariffs.
99% of Indian exports to the UK will become duty-free, benefiting sectors like textiles and gems.
The UK will lower tariffs on 90% of its products, with whisky duties decreasing significantly.
Six UK universities are set to open campuses in India, expanding educational ties.
- Who
- Prime Ministers Narendra Modi (India) and Keir Starmer (UK).
- What
- The signing of the India-UK Comprehensive Economic and Trade Agreement (CEPA).
- When
- Signed on July 24, 2025, after nearly three years of talks.
- Where
- The signing took place in the UK.
- Why
- To boost trade, reduce tariffs, and strengthen economic ties between the two countries.
Potential Concerns
Benefits
Overall Impact
Potential Concerns
Some potential issues for sectors of both countries.
Benefits
The deal overall provides comprehensive market access for goods, covering all of India’s export interests.
- Agreement Name
- Comprehensive Economic and Trade Agreement (CEPA)
- Expected Trade Increase
- $34 billion annually
- Target Trade Value by 2030
- $120 billion
- Indian Exports Duty-Free
- 99%
- UK Tariff Reduction (Average)
- From 15% to 3%
- Scotch Whisky Tariff Reduction
- From 150% to 75% immediately, then 40% over ten years
Sources
'Most Comprehensive Deal Since UK Left EU': PM Keir Starmer On Trade Pact With India
Much-awaited India-UK trade deal inked in Modi-Starmer's presence
After Southampton in Gurugram, 6 more UK universities to open in India: PM Modi
'Historic day in our relations': PM Modi announces India-UK free trade agreement
