Cabinet Approves India-UK Free Trade Agreement; Signing Scheduled in London on July 24
New Delhi, Jul 23: The Union Cabinet on Tuesday approved the India–United Kingdom Free Trade Agreement (FTA), paving the way for its formal signing in London on July 24, during Prime Minister Narendra Modi’s visit to the UK, official sources said.
The pact, formally termed the Comprehensive Economic and Trade Agreement (CETA), is aimed at significantly enhancing bilateral trade, with a target to double the trade volume to USD 120 billion by 2030.
Prime Minister Modi embarks on a four-day visit to the United Kingdom and the Maldives starting Wednesday. He will be accompanied by Commerce and Industry Minister Piyush Goyal, who will co-sign the agreement with his British counterpart.
Negotiations for the FTA were concluded on May 6 this year. The agreement includes provisions for tariff elimination on labour-intensive exports from India, such as leather, footwear, and apparel. In return, it will allow easier access to the Indian market for British products like whisky and automobiles.
The agreement also covers chapters on goods and services, innovation, government procurement, and intellectual property rights.
Once signed, the FTA will require ratification by the British Parliament before it can come into force.
In a significant parallel development, both countries have also concluded negotiations on the Double Contribution Convention Agreement, a social security pact that will benefit Indian professionals working temporarily in the UK by avoiding dual contributions to social security systems.
However, talks on the Bilateral Investment Treaty (BIT) are still underway.
The India-UK FTA is expected to remove or significantly reduce customs duties on most goods traded between the two nations and liberalize norms governing services and investments.
In the financial year 2024–25, India’s exports to the UK rose 12.6% to USD 14.5 billion, while imports increased 2.3% to USD 8.6 billion. Overall bilateral trade stood at USD 21.34 billion in 2023–24, up from USD 20.36 billion in 2022–23.
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