In a landmark address, Prime Minister Modi hailed the year as a significant milestone in India-UK relations, driven by the signing of the Comprehensive Economic and Trade Agreement (CETA) in July 2025.
This historic pact has been described as more than a simple trade deal. The Prime Minister extended his appreciation to his counterpart, UK Prime Minister Keir Starmer, for his vision and dedication. He emphasized that CETA serves as a blueprint for shared growth and mutual prosperity, designed to deepen connections between both nations. The agreement provides unprecedented duty-free access for nearly 99% of India’s exports to the UK, covering labor-intensive sectors such as textiles and leather, as well as high-growth areas like engineering goods and auto components.
The Prime Minister stated, “This year has been truly exceptional, marking a significant advancement in India-UK relations despite ongoing global uncertainties. During my visit to the UK in July, we successfully signed the Comprehensive Economic and Trade Agreement (CETA). I extend my heartfelt appreciation and congratulations to my friend, Prime Minister Starmer, for his vision and dedication in bringing this historic agreement to fruition.”
He further underscored that CETA aims to benefit more than just large corporations. The agreement is designed to empower MSMEs in both nations and create new employment opportunities for millions of young people. With bilateral trade currently valued at approximately $56 billion, the two nations have set an ambitious goal of doubling this figure to $120 billion by 2030. The Prime Minister expressed confidence that, with joint efforts, this target could be achieved ahead of schedule.
A New Vision for Partnership
To fully realize the potential of CETA, the Prime Minister proposed four new dimensions to broaden its scope. These pillars represent a renewed vision for CETA: ‘C’ for Commerce and Economy, ‘E’ for Education and People-to-People Relations, ‘T’ for Technology and Innovation, and ‘A’ for Aspiration. This expanded framework builds on the existing pact, which already simplifies business mobility and reduces tariffs on key sectors like automotive, spirits, and technology.
The Prime Minister highlighted the potential for combining India’s strength in fintech with the UK’s financial services expertise. He pointed out that “Today, nearly half of the world’s real-time digital transactions take place in India. By combining the UK’s strengths in financial services with India’s Digital Public Infrastructure, we have an opportunity to deliver meaningful benefits for the entire world.” In the PM’s address, he outlined that this collaboration holds the potential to set a new standard for global fintech solutions.
In a move that solidifies the long-term strategic partnership, both leaders have also jointly launched the Vision 2035 roadmap. This comprehensive, 10-year plan outlines areas for cooperation including trade, technology, and defense. The synergy of India’s talent and scale with the UK’s research and expertise is expected to bring about transformative outcomes.
The Prime Minister’s final message was a call for collaboration and support with the UK, stating, “Your collaboration and support will be vital in turning these ambitions into tangible achievements—delivered in a focused and time-bound manner.” This proactive approach, including the recent signing of the Terms of Reference to reposition the Joint Economic and Trade Committee (JETCO), is seen as crucial for the agreement’s successful implementation and delivery of tangible gains for businesses and consumers.
