India-UK Free Trade Agreement | The Union Cabinet on Tuesday approved the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom, according to official sources. The pact is scheduled to be signed in London on July 24 during Prime Minister Narendra Modi’s four-day visit to the UK and the Maldives, beginning Wednesday.
The trade deal, which was concluded on May 6, will be signed by the commerce ministers of both countries. Indian Commerce and Industry Minister Piyush Goyal will accompany the prime minister during the visit.
Trade Pact Aims to Boost Bilateral Trade to $120 Billion
The agreement aims to eliminate taxes on India’s labour-intensive exports such as leather, footwear, and apparel, while easing import duties on UK goods including whisky and cars. The move is designed to enhance trade volume between the two nations, with the target of doubling it to USD 120 billion by 2030.
The India-UK FTA includes chapters on trade in goods and services, innovation, government procurement, and intellectual property rights. Once signed, the agreement will need ratification by the British Parliament before it comes into effect.
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India and the UK have also finalised negotiations for the Double Contribution Convention Agreement — a social security pact that will exempt Indian professionals from dual contributions to social security schemes when working temporarily in the UK.
Meanwhile, discussions are still underway for the proposed Bilateral Investment Treaty (BIT).
In the financial year 2024–25, India’s exports to the UK increased by 12.6% to USD 14.5 billion, while imports rose by 2.3% to USD 8.6 billion. Bilateral trade climbed to USD 21.34 billion in 2023–24 from USD 20.36 billion in the previous year.
