SF Prep Notes

India and UK sign Comprehensive Economic and Trade Agreement (CETA)

On 24 July 2025, during PM Modi's visit to the UK, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement, giving zero-duty access to 99% of India's tariff lines.

Summary

India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) on 24 July 2025 during Prime Minister Narendra Modi's visit to the UK. Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds signed the agreement in the presence of Prime Ministers Narendra Modi and Keir Starmer. The signing follows the conclusion of negotiations announced on 6 May 2025. CETA gives zero-duty access to 99% of tariff lines, covering nearly 100% of India's export value to the UK, benefiting labour-intensive sectors such as textiles, leather, footwear, gems and jewellery, marine products and toys. India-UK bilateral trade is nearly USD 56 billion, with a goal to double it by 2030. The agreement eases mobility for Indian professionals, and the Commerce Ministry said a Double Contribution Convention will exempt Indian workers and their employers from UK social security contributions for three years.

Key facts

Signed
24 July 2025, during PM's UK visit (23-24 July)
Signatories
Piyush Goyal and Jonathan Reynolds
In presence of
PM Narendra Modi and PM Keir Starmer
Negotiations concluded
Announced 6 May 2025
Market access
Zero duty on 99% of tariff lines (~100% of trade value)
Bilateral trade
~USD 56 billion; goal to double by 2030
Double Contribution Convention
Exemption from UK social security contributions for three years

Practice MCQs 5 questions

Q1

Who signed the India-UK Comprehensive Economic and Trade Agreement on behalf of India on 24 July 2025?

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Correct answer: B — Piyush Goyal

PIB (24 July 2025): the agreement was signed by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of the two Prime Ministers.

Q2

Under the India-UK CETA, zero-duty access is available on what share of tariff lines?

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Correct answer: A — 99%

PIB: zero-duty access on 99% of tariff lines, covering nearly 100% of the trade value.

Q3 Advanced

The signing of the India-UK CETA on 24 July 2025 followed the conclusion of negotiations announced on:

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Correct answer: D — 6 May 2025

PIB (24 July 2025): the signing of the India-UK CETA follows the successful conclusion of negotiations announced on 6 May 2025.

Q4 Advanced

Consider the following statements about the India-UK CETA (July 2025): 1. India-UK bilateral trade stands at nearly USD 56 billion, with a goal to double it by 2030. 2. The Double Contribution Convention will exempt Indian workers and their employers from UK social security contributions for three years. 3. The agreement was signed by the two Prime Ministers. Which of the statements given above is/are correct?

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Correct answer: C — 1 and 2 only

PIB: trade is nearly USD 56 billion with a goal to double by 2030, and the DCC will exempt Indian workers and employers from UK social security contributions for three years. The agreement was signed by Piyush Goyal and Jonathan Reynolds in the presence of the two PMs, so 3 is wrong.

Q5 Advanced

Which UK minister signed the India-UK CETA on 24 July 2025?

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Correct answer: D — Jonathan Reynolds, Secretary of State for Business and Trade

PIB: the agreement was signed by Jonathan Reynolds, Secretary of State for Business and Trade; Rachel Reeves was present.

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