India and the United Kingdom on Thursday signed the Comprehensive Economic and Trade Agreement (CETA), a wide-ranging free trade deal aimed at boosting access to goods and services between the two countries.
The agreement was signed during Prime Minister Narendra Modi’s two-day official visit to the UK and marks the most significant trade pact for both countries in recent years. It is also the largest deal the UK has entered into since leaving the European Union.
Speaking during a joint press conference with British Prime Minister Keir Starmer, PM Modi hailed the agreement as a major milestone in the bilateral relationship.
“Today marks a historic day in our bilateral relationship. I am pleased to note that, after many years of hard work, the Comprehensive Economic and Trade Agreement between our two countries has been concluded,” PM Modi said.
He added: “This agreement not only paves the way for economic partnership but also serves as a blueprint for our shared prosperity.”
PM Modi highlighted that the deal will improve market access for several Indian sectors, including textiles, footwear, gems and jewellery, seafood, engineering goods, agricultural products, and processed foods, bringing tangible benefits to youth, farmers, fishermen, and micro, small and medium enterprises (MSMEs).
Later, in a post on X, PM Modi described the deal as “a new chapter” in the India–UK economic partnership.
“The signing of the Comprehensive Economic and Trade Agreement (CETA) reflects our shared commitment to enhancing trade, driving inclusive growth and creating opportunities for farmers, women, youth, MSMEs, and professionals,” he wrote.
“Labour-intensive sectors such as textiles, leather & footwear, marine, gems & jewellery, organic chemicals, plastics, auto parts, artisanal products and services are poised for strong growth. This will ensure further acceleration of India’s journey towards becoming a global manufacturing hub.”
“India-UK CETA will add momentum to the ‘Make in India’ led growth and export promotion. This agreement will also provide Indian consumers with high-quality goods at competitive prices. The future indeed holds the promise of greater prosperity and deeper ties between our nations!” he added.
UK Prime Minister Keir Starmer called the CETA “the biggest trade deal since the UK left the European Union.”
“We both know, this is the biggest and the most significant trade deal that the UK has made since leaving the EU. I think I can say this is the most comprehensive deal that India has ever done. So thank you Prime Minister for your leadership and your pragmatism. I’d like to thank everybody who has worked so hard to get this deal over the line,” Starmer said.
Starmer stressed the deal’s potential to boost wages, cut tariffs, and improve living standards across the UK.
“It is a deal to bring huge benefits to both of our countries, boosting wages, raising living standards, and putting more money in the pockets of working people. It is good for jobs, it is good for business, cutting tariffs, making trade cheaper, quicker and easier. It is good for British workers in cutting-edge manufacturing, whiskey distillers across Scotland, and the service sector in London, Manchester and Leeds,” he said.
He also noted that consumers in the UK would benefit from lower prices on Indian imports such as clothes, footwear, and food.
“It will deliver benefits for the long term. It will add about 4.8 billion pounds to the UK economy every year and 2.2 billion pounds to wages and hundreds of millions of pounds to regions and nations up and down the United Kingdom,” he added.
Earlier, in a post on X, Starmer described the CETA as a “landmark deal” that would “create thousands of British jobs, unlock new opportunities for businesses, and put money in the pockets of working people.”