India and the United Kingdom signed a Comprehensive Economic Trade Agreement (CETA) on Thursday (July 24, 2025) during Prime Minister Narendra Modi’s visit to the U.K. The deal, announced in May, more than three years after negotiations were re-launched, was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynolds. The two sides also released a reworked and extended cooperation framework, replacing ‘Roadmap 2030’ with the ‘India-U.K. Vision 2035’ framework.
“Today marks a historic day in our bilateral relations,” said Mr. Modi while delivering a press statement beside U.K. Prime Minister Keir Starmer at Chequers, the latter’s official country residence, following the signing of the deal.
Mr. Modi said the deal would benefit Indian farmers, the MSME sector, Indian footwear and jewellery exports, as well as seafood and engineering goods sectors. He indicated that British medical devices and aerospace parts would be more easily sold in India (i.e., they would face lower Indian tariffs). As the actual details of the deal began emerging on Thursday, both sides were keen to emphasise the benefits of the deal to their respective political constituents.
“There may be a swing and a miss at times, but we always play with a straight bat. We are committed to building a high-scoring, solid partnership,” Mr. Modi told Mr. Starmer, using a cricket metaphor as India and England battled it out in the fourth test match in Manchester.
“It is good for British workers in cutting edge manufacturing, whiskey distillers across Scotland and the service sector in London, in Manchester and in Leeds,” Mr. Starmer said, listing some of the benefits of the trade deal for Britons. Indian clothes, food, and shoes would be less costly in the U.K., Mr. Starmer said.
The deal was Britain’s “biggest” trade deal since Brexit (Britain’s 2016 departure from the E.U.), U.K. trade minister Jonathan Reynolds told the BBC. “… And it’s the best deal that India has ever offered anyone,” he said.
India and the U.K. also agreed to negotiate a reciprocal Double Contributions Convention (DCC). This agreement – when it comes into effect – would ensure that employers and employees working across borders, for a period of up to three years, would pay social contributions only in one country at a given time. The current exemption period is for one year.
The DCC had earlier been announced as a part of the trade deal in the U.K., where exemptions from social security payments are politically sensitive. The DCC is legally linked to the CETA, and must come into effect for the CETA to become operational, L. Satya Srinivas, a Ministry of Commerce bureaucrat, told The Hindu.
The Vision 2035 statement comprises several pillars: growth and jobs; technology (building on the Technology Security Initiative launched exactly a year ago); climate; defence and security. The two sides agreed to regular interaction between the two Prime Ministers and an annual review of how Vision 2035 was being implemented, conducted at the Foreign Minister level.
The sides also discussed global and regional issues during Thursday’s talks. They committed to strengthening and reforming multilateralism, specifically at the United Nations and its Security Council, the Commonwealth, the World Trade Organization, World Health Organization, International Monetary Fund, and World Bank to “reflect contemporary global realities”. The U.K. is a permanent member of the U.N. Security Council and supports India’s permanent membership to the body.
During a press briefing on Thursday, Foreign Secretary Vikram Misri emphasised the significance of such a deal being struck in a challenging environment for trade, globally. He was responding to a question from The Hindu on whether the United States’s retrenchment from the world and trade discussions of both the countries with the U.S. were brought up during Mr. Modi’s and Mr. Starmer’s bilateral talks.
Mr. Modi thanked Mr. Starmer for his support following the Pahalgam terror attack of April 22.
“We are united in the belief that there is no place for double standards in the fight against terrorism,” Mr. Modi said. “We also agree that the forces which espouse extremist ideologies should not be allowed to misuse democratic freedoms. Those who misuse democratic freedoms to undermine democracy itself must be held to account,” he said.
The two countries would also enhance cooperation on the extradition of economic offenders, Mr. Modi said. The U.K. is host to several individuals who are considered economic fugitives under Indian law, including jeweller Nirav Modi, and businessmen Lalit Modi and Vijay Mallya.
“We have continued to exchange views on peace and stability in the Indo Pacific, the ongoing conflict in Ukraine and the situation in West Asia,” the Prime Minister said, adding that India supported the “early restoration of peace and stability” and respect for sovereignty and territorial integrity of all countries.
“Today’s era demands development, not expansionism,” he said.
Industries react to trade deal
Several industry bodies welcomed the trade agreement.
“It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships between Indian and U.K. businesses,” the Confederation of Indian Industry’s Director General, Chandrajit Banerjee, said.
However, not everyone was happy. Prior to the release of the text of the deal, the Confederation of Indian Alcoholic Beverage Companies issued a statement expressing concern that the government had not responded adequately to its call for a minimum import price and removal of non-tariff barriers to exports.
India’s tariff on whiskey and gin from the U.K. will fall from 150% to 75% immediately and reach 40% from year 10 (after the agreement comes into effect) as per the agreement. The International Spirits and Wines Association of India – which is focused on international brands – welcomed this reduction.
Security heightened
Following the unveiling of the trade deal, a business showcase event and interaction with local cricket clubs in Bedfordshire, the Prime Minister met with Britain’s King Charles at the monarch’s Sandringham estate where he gave the king a sapling as part of his ‘Ek Ped Maa Ke Naam’ (‘A tree in mother’s name’) campaign to celebrate mothers.
The entire trip has had an added level of security, in response to concerns around Khalistani separatist activity. Mr. Modi did not spend any time in London, staying overnight at Luton Hoo – a sprawling golf resort in Bedfordshire.
The press was escorted in vans through the countryside to the hotel, for a press briefing with Mr. Misri, who said the issue “with regard to extremists” was raised during the talks. The Indian side had noted that India’s diplomatic missions and personnel had been under threat, the Foreign Secretary said.
There were violent protests outside the Indian High Commission in March 2023. In March this year, a pro-Khalistani protestor rushed in front of External Affairs Minister S. Jaishankar’s car as he was leaving an event in central London.
“And I would say that we have received cooperation as well on these matters, and including during this specific visit, we have received cooperation from our U.K. partners on addressing these issues,” Mr. Misri said.
Mr. Modi did not take any questions from the press as he has begun doing on recent visits to Washington. The majority of the Indian press corps was not present at Chequers. The Hindu was told that only official Indian media would be allowed during the delivery of press statements due to the limited amount of press seats allocated by the British government.
