It was a historic trip of PM Narendra Modi to the U.K in July 2025 where a landmark Comprehensive Economic Trade Agreement (CETA) was signed between India and the United Kingdom. The agreement reduces tariffs, increases bilateral trade and expands cooperation in MSMEs, aerospace, defence and in clean energy. It also forges the new convention of social security called Double Contributions Convention (DCC), as well as supersedes the previous Roadmap 2030 with India-U.K. Vision 2035. Billed as the largest trade deal following the Brexit decision in the U.K, the deal will also enhance strategic relationships, climate action, and multilateralism. The two nations want to become acting global partners in the 21st century.

Context

  • Incident: Comprehensive Economic Trade Agreement (CETA) was signed
  • July 2025
  • Place: Chequers Estate, the United Kingdom
  • Key Players: PM Narendra Modi (India), PM Keir Starmer (U.K)

Summary of the CETA Agreement

Area

Key Provisions

Tariff Benefits

U.K. reduces tariffs on Indian MSME goods, jewellery, seafood, footwear, apparel. India cuts duties on British medical devices, aerospace components.

Consumer Impact

British consumers gain cheaper access to Indian products; Indian market opens to high-tech U.K. goods.

Employment

Boosts job creation and economic growth in both nations.

Historical Significance

India’s most generous FTA ever; U.K.’s biggest post-Brexit trade agreement.

Economical and Strategical Meaning

  • Trade Boost: It will increase the level of two-way trade volume and FDI significantly.
  • Sectoral target: MSMEs, clean energy, aerospace, food, medical tech and jewellery.
  • Jobs and Growth: Specific collaboration towards job creation and productivity.

Convention on Prescribed Levels of Double Contributions (DCC)

Social Security Reform:

  • Professionals working in either of the countries do not have to contribute socially in both countries (maximum 3 years).
  • Is the substitute of the old single-year policy.
  • Facilitates movement and alleviates the burden of dual taxation to the professionals.

Global and Strategic Governance Cooperation

  • UNSC Reform: U.K in support of India membership in UNSC (on a permanent basis).
  • Joint reforms promised by Multilateral Bodies:
  • United Nations
  • WTO, WHO, IMF, World Bank
  • Commonwealth
  • Anti-Terrorism Position: United stance and zero-tolerance to intellectual evenues.

Quotes of Leaders

  • PM Narendra Modi: An agreement set up ready to face the future and enhance mutual prosperity and world leadership.
  • PM Keir Starmer: an iconic alliance that will bring jobs, development, and connection after Brexit.

Conclusion

It is the dawn of the new era of bilateral relations based on trade, technology and strategic relations between India and the U.K. through India U.K. CETA and Vision 2035. It also symbolizes similar democratic principles and progressive policies, as both countries plan to create a sustainable, secure, and innovation-driven world in the multipolar structure.

 

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