PM Modi and UK PM Starmer Discuss India-UK CETA: A Game-Changer for Jobs, Trade, and Economic Ties

October 9, 2025 – Prime Minister Narendra Modi today shared an optimistic update on the groundbreaking India-UK Comprehensive Economic and Trade Agreement (CETA), describing it as a transformative pact that will unlock new job opportunities for Indian youth, expand bilateral trade, and deliver tangible benefits for industries and consumers in both nations. In a post on X, Modi highlighted his recent discussions with UK Prime Minister Keir Starmer on strengthening trade linkages and economic cooperation, signaling a robust future for the strategic partnership between the two countries.

The CETA, signed on July 24, 2025, during Modi’s visit to the UK, marks the most significant trade deal for both nations since the UK’s exit from the EU and India’s first major FTA with a Western economy. The agreement slashes tariffs on 99% of goods, reducing average duties on British imports to India from 15% to 3%, and opens up key service sectors like IT, finance, and healthcare. Officials estimate it could boost bilateral trade by £25.5 billion annually, elevate UK GDP by £4.8 billion, and create thousands of jobs, particularly in manufacturing, technology, and services. For India, it promises enhanced market access for textiles, pharmaceuticals, and agricultural products, while fostering investments in emerging areas like green energy and digital innovation.

Modi’s conversation with Starmer, held during the UK Prime Minister’s two-day visit to India (October 8-9), focused on swift implementation through the repositioned Joint Economic and Trade Committee (JETCO). Accompanied by over 100 business leaders—the largest-ever UK trade mission—Starmer emphasized the deal’s role in making trade “quicker and cheaper,” with specific gains for UK exports like Scotch whisky, shortbread, and electric vehicle components. The leaders also addressed the 2025 USMCA review, supply chain resilience, and joint efforts against global challenges like climate change and cybersecurity.

This exchange builds on the ‘India-UK Vision 2035’ roadmap, covering trade, defense, health, and education. As Modi noted, “The path-breaking India-UK CETA will create new job opportunities for youth, expand trade, and benefit both our industries as well as consumers.” With Starmer’s visit including keynote addresses at the Global Fintech Fest in Mumbai, the talks reaffirm a forward-looking alliance poised to double bilateral trade to $120 billion by 2030.