'Historic day in our relations': PM Modi announces India-UK free trade agreement

Prime Minister Narendra Modi on Thursday described the signing of the India-UK free trade agreement as “a historic day in our relations.” Announcing the deal, PM Modi said that the two nations have signed the Comprehensive Economic and Trade Agreement after the hard work of several years.

"Today marks a historic day in our relations. I am delighted that after the hard work of several years, today our two nations have signed the Comprehensive Economic and Trade Agreement," he said.

PM Modi said the agreement is a plan for shared prosperity. He said that Indian exports, like textiles, footwear, gems, and jewelry, will get better access to the UK market. He said London will get easy market access for Indian agricultural products and processed food.

PM Modi said that the agreement will benefit Indian's youth, farmers, fisherfolk, and the MSME sector.

"This agreement is not just an economic agreement but also the plan for a shared prosperity. On one side, Indian textiles, footwear, gems and jewellery, seafood, and engineering goods will get better market access in the UK. New opportunities will emerge in the UK market for India's agricultural produce and processed food industry. This agreement will especially benefit Indian youth, farmers, fishermen, and the MSME sector," he further said at a joint press conference with his UK counterpart, Keir Starmer.

Elaborating further on the merits of the deal, PM Modi said that because of the deal, Indian people and industries will have better access to UK-made products, including medical devices, at reasonable and affordable prices.

UK PM Keir Starmer said the agreement will be beneficial for both nations and will boost wages and raise the standards of living.

"It is a deal that will bring huge benefits to both of our countries, boosting wages, raising living standards, and putting more money in the pockets of working people. It is good for jobs, it is good for business, cutting tariffs and making trade cheaper, quicker and easier," he said.

India's commerce minister, Piyush Goyal, said that thelandmark India-UK Comprehensive Economic and Trade Agreement (CETA) entails duty-free access for about 99% of Indian exports, unlocking nearly $23 billion in opportunities for labour-intensive sectors. He wrote on X that the agreement is a big win for Indian farmers as it ensures duty-free exports on nearly 95% of agricultural products. "Fisherfolk gain from Zero Duty on 99% of marine exports, boosting their incomes," he said.

"India’s talent in IT, services, and education will gain from easier access to the UK’s high-value markets. The three-year exemption from social security contributions in the UK as part of the Double Contribution Convention is a significant breakthrough for Indian workers and their employers. Chefs, yoga instructors, musicians & business visitors will benefit, advancing our vision to be a global talent hub," he added.