India and UK Launch Comprehensive Economic and Trade Agreement

Prime Minister Narendra Modi has welcomed the launch of the India-UK Comprehensive Economic and Trade Agreement (CETA), marking a significant step in strengthening economic ties between the two nations. This agreement, which follows extensive negotiations, aims to create new opportunities for businesses and consumers alike. With duty-free access for 99% of tariff lines, various sectors including textiles and engineering will benefit. The Social Security Agreement is also expected to support Indian professionals in the UK, enhancing competitiveness. This partnership reflects a commitment to mutual prosperity and collaboration in technology and innovation.

By Narendra Chaudhary Jul 15, 2026, 13:41 IST

Significant Milestone in India-UK Relations

On Wednesday, Prime Minister Narendra Modi expressed his enthusiasm for the implementation of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA). He described this moment as pivotal, aimed at strengthening economic ties between the two nations while creating new opportunities for businesses, workers, and consumers. Following nearly three years of negotiations, this crucial Free Trade Agreement (FTA) was officially enacted after discussions between Prime Minister Modi and UK counterpart Keir Starmer last year.

Enhancing Economic Collaboration

In a post on the social media platform 'X', the Prime Minister highlighted that this agreement marks a significant moment in the India-UK partnership. He noted that the implementation of both the Comprehensive Economic and Trade Agreement and the Social Security Agreement would deepen economic relations. Together, these agreements are expected to transform shared ambitions into tangible opportunities for citizens. Modi emphasized that CETA would provide new momentum for farmers, entrepreneurs, and MSMEs, granting better access to the UK market for several key sectors. This will also enhance collaboration in technology, professional services, and innovation, while promoting the mobility of skilled Indian talent.

Support for Indian Professionals

The Prime Minister mentioned that the Social Security Agreement would significantly benefit Indian professionals working temporarily in the UK, enhancing the competitiveness of Indian companies. He stated that this moment reflects a commitment to building a partnership based on trust between our democracies, focusing on trade, technology, investment, and innovation. India and the UK will continue to work together for shared prosperity.

Trade Benefits Under the New Agreement

Under the newly implemented agreement, India will enjoy duty-free trade on 99% of tariff lines in the UK. This will benefit various sectors, including textiles, leather, footwear, seafood, engineering goods, chemicals, and processed foods. This agreement is one of the most significant trade deals for the UK post-Brexit, providing UK businesses with greater access to one of the fastest-growing consumer markets in the world.