India-UK Free Trade Agreement Boosts Bilateral Market Access, Tariffs Cut

India and the United Kingdom have signed a landmark Comprehensive Economic and Trade Agreement (CETA), marking a historic milestone in bilateral relations and economic partnership underscored by Prime Minister Narendra Modi's leadership. The trade deal is India's largest strategic partnership with an advanced economy and aims to boost bilateral trade to $30 billion by eliminating tariffs on most goods, while carefully protecting sensitive sectors such as agriculture, dairy, and certain automotive segments. India has notably agreed to phased tariff reductions on British vehicles, focusing concessions on large petrol and diesel cars while excluding electric, hybrid, and hydrogen vehicles for the first five years to safeguard its domestic automotive industry. The agreement is expected to enhance market access for Indian exports including textiles, engineering goods, and agricultural products, benefiting farmers, MSMEs, and entrepreneurs, and serves as a potential template for future deals with the EU and the U.S. Both countries emphasized the deal as a foundation for shared prosperity and a resilient, inclusive economic future, reflecting mutual trust and cooperation. The pact also simplifies customs procedures and opens avenues for broader partnerships with other European nations.