India-UK trade pact to help double bilateral trade to USD 112 bn by 2030

New Delhi, July 24 (PTI) India and the UK signed a free trade agreement on Thursday with an aim to double the bilateral trade to USD 112 billion by 2030, as the deal will boost exports from labour-intensive sectors such as textiles and leather, while making British cars and whiskey cheaper in India.

Besides Indian professionals, including those deployed by companies to work in the UK across all services sectors, professionals deployed on contracts such as architects, engineers, chefs, yoga instructors, and musicians will benefit from simplified visa procedures and liberalised entry categories under the agreement.

The pact, officially called the Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.

Commerce and Industry Minister Piyush Goyal and Secretary of State for Business and Trade Jonathan Reynolds signed the pact in the presence of the two Prime Ministers.

"The bilateral trade between the two countries stands at nearly USD 56 billion, with a joint goal to double this figure by 2030," the commerce ministry said.

It said that the agreement secures duty-free access for 99 per cent of India's exports to the UK, covering nearly the entire trade basket.

This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals.

The services sector, a strong driver of India's economy, will also see wide-ranging benefits.

"The agreement provides greater market access in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade," the ministry said.

India has also secured an agreement on the Double Contribution Convention, which will exempt Indian professionals and their employers from social security payments in the UK for up to three years, improving the cost competitiveness of Indian talent.

The bilateral trade in goods stood at USD 23.1 billion in the last fiscal. India's exports to the UK rose by 12.6 per cent to USD 14.5 billion, while imports grew by 2.3 per cent to USD 8.6 billion in 2024-25. The trade balance is in favour of India.

The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23.

As the agreement requires approval of the British parliament, it may take about an year for the pact to come into force. The conclusion of the negotiations of the CETA was announced on May 6. PTI RR CS MR