Prime Minister Narendra Modi has hailed the entry into force of the India-UK Comprehensive Economic and Trade Agreement (CETA) from 15 July 2026 as a historic milestone in bilateral relations. 

Speaking from Evian, France, where he is attending the G7 Summit alongside British Prime Minister Keir Starmer, Modi described the agreement as a major step forward for trade and investment between the two countries.

In a post on X, Modi emphasised that the agreement would significantly strengthen economic engagement between India and the United Kingdom while opening up opportunities across key sectors. He noted that the pact would contribute meaningfully to India’s long-term development vision of Viksit Bharat 2047, unlocking opportunities for farmers, workers, MSMEs, start-ups and innovators.

The Prime Minister expressed his delight at the momentum being added to economic ties, highlighting that both he and Starmer were pleased with the progress achieved. The British High Commissioner to India, Lindy Cameron, also confirmed the implementation date, describing the agreement as a landmark step in bilateral economic relations. In her statement, she called it an historic moment for the modern UK-India partnership, unlocking a new era of growth for both economies.

The announcement marks the final step before implementation of the trade pact, which was signed in July 2025 after nearly three years of negotiations.

The deal, officially known as the Comprehensive Economic and Trade Agreement, is expected to boost bilateral trade by £25.5 billion annually. It was signed during Modi’s visit to the UK in July 2025, marking a significant milestone in the economic partnership between the world’s fifth- and sixth-largest economies.

The agreement includes substantial tariff reductions on goods such as textiles, whisky and cars, making Indian exports more competitive in the UK market and vice versa. Indian businesses will gain greater access to the UK market, with the UK offering 99.1 per cent of tariff lines with 100 per cent trade value, mostly at zero duty immediately upon enforcement. The Ministry of Commerce and Industry has stated that 90.2 per cent of India’s exports to the UK will become duty-free under the agreement.

The pact is expected to create thousands of jobs in both countries, particularly in sectors such as textiles, leather, footwear, sports goods and engineering. It aims to expand market access, reduce tariffs and double bilateral trade by 2030. With the implementation date now confirmed, businesses in both countries are preparing for the rollout of tariff reductions and other trade facilitation measures.

Modi’s bilateral meetings at the G7 Summit also underscored India’s multi-alignment approach, which is yielding concrete economic outcomes across major global economies. The India-Canada Joint Statement noted satisfaction with progress in negotiations towards a Comprehensive Economic Partnership Agreement, reaffirming the shared objective of concluding talks in 2026.

Meanwhile, EU leaders emphasised that following the conclusion of the ‘mother of all trade deals’, the India-EU Free Trade Agreement, they were moving swiftly to deliver on commitments and expected to sign the agreement by the end of the year.

Taken together, these developments highlight how India’s multi-alignment strategy is translating into tangible economic gains, with major agreements advancing simultaneously with Canada, the United Kingdom and the European Union. The India-UK trade pact’s entry into force on 15 July represents a landmark achievement in this broader diplomatic and economic trajectory.

ANI