Cabinet Greenlights Free Trade Agreement to Be Signed During PM’s UK Visit

Cabinet Approves India-UK Free Trade Agreement, Signing Set for July 24 in London.

The Union Cabinet on Tuesday approved the long-awaited Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom, which is set to be signed in London on July 24 during Prime Minister Narendra Modi’s visit, official sources confirmed.

PM Modi will embark on a four-day visit to the United Kingdom and the Maldives starting Wednesday. Commerce and Industry Minister Piyush Goyal is expected to accompany him for the high-level engagements, including the formal signing of the trade pact.

The India-UK trade agreement aims to significantly boost bilateral economic ties by removing or reducing tariffs on key goods and services. Labour-intensive Indian exports such as leather, textiles, and footwear will benefit from duty-free access, while the UK will see lower tariffs on exports like premium whisky and automobiles.

Negotiations for the deal were officially concluded on May 6, and the agreement includes comprehensive chapters on goods, services, investment, innovation, intellectual property rights, and government procurement. The goal is to double bilateral trade to $120 billion by 2030.

The agreement will be signed by the commerce ministers of both countries and must be ratified by the UK Parliament before it can come into effect. In India, such agreements are enforced after Cabinet approval and official notification.

In addition to the FTA, India and the UK have also finalized the Double Contribution Convention Agreement (social security pact), which will help Indian professionals avoid dual contributions to British social security during short-term assignments.

However, negotiations are still underway on the proposed Bilateral Investment Treaty (BIT), which would provide a legal framework to protect investments from both sides.

India’s exports to the UK rose by 12.6% to $14.5 billion in FY 2024–25, while imports grew 2.3% to $8.6 billion. Overall bilateral trade stood at $21.34 billion in 2023–24, up from $20.36 billion the previous year.