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India signed its 16th FTA, the Comprehensive Economic and Trade Agreement (CETA), with the UK to boost trade, investments, and strategic cooperation.

India, UK sign CETA: Aiming to double trade by 2030

India signed its 16th FTA, the Comprehensive Economic and Trade Agreement (CETA), with the UK to boost trade, investments, and strategic cooperation.

India on Thursday signed a free trade agreement, officially dubbed as the Comprehensive Economic and Trade Agreement (CETA), with the UK &ndash; its 16th trade pact so far &ndash; as the country aims to boost bilateral trade and investments.
The other regions and countries with which India has signed such agreements include the four-nation European bloc EFTA, Japan, Korea and Australia.
Since 2014, the country has signed five trade pacts with Mauritius, the UAE, Australia, EFTA and the UK.
What is an FTA? A free trade agreement is an arrangement between two or more countries where they agree either to end or reduce customs duties on the maximum number of goods traded between them, besides cutting down non-trade barriers on a significant value of imports from partner countries and easing norms to promote services exports and bilateral investments.
The subjects covered under these pacts range from 10 to 30. Across the globe, over 350 FTAs are currently in force and most of the nations have signed one or more such agreements.
What are the benefits of FTAs? 
Zero-duty entry into partner country markets helps in the diversification and expansion of export markets.
Level-playing field vis-a-vis competitors who may have already entered FTAs with partner countries.
FTAs enable preferential treatment in the partner country market over non-FTA member country competitors.
Such pacts attract foreign investment to stimulate domestic manufacturing. They allow access to raw materials, intermediate products and capital goods for value-added manufacturing.
Help achieve long-term efficiency and consumer welfare goals.
&nbsp;
<blockquote class="twitter-tweet">
Congratulations to Prime Minister <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@NarendraModi</a> ji, UK Prime Minister <a href="https://twitter.com/Keir_Starmer?ref_src=twsrc%5Etfw">@Keir_Starmer</a>, and the people of India &amp; the United Kingdom on the signing of the landmark India-UK Comprehensive Economic and Trade Agreement (CETA). Duty-free access for about 99% of Indian exports unlocks&hellip; <a href="https://t.co/AWAwVTwtrg">pic.twitter.com/AWAwVTwtrg</a>
&mdash; Piyush Goyal (@PiyushGoyal) <a href="https://twitter.com/PiyushGoyal/status/1948325701847073039?ref_src=twsrc%5Etfw">July 24, 2025</a></blockquote>
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FTAs signed by India so far
India has inked trade deals with Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, Korea, Japan, Australia, the UAE, Mauritius, the 10-nation bloc ASEAN (Association of Southeast Asian Nations), and four European nations' bloc EFTA (Iceland, Liechtenstein, Norway, and Switzerland).
In addition, India is negotiating trade agreements at present with a number of its trading partners. The negotiations are underway with the US, Oman, the European Union (EU), Peru, and Israel.
Talks with Canada for a similar pact were put on hold due to certain political issues. Advantages of these pacts: These trade agreements have contributed to enhance market access, reduce tariff and non-tariff barriers, strengthen strategic partnerships, and support domestic industry through balanced trade facilitation.
Collectively, these FTAs reflect a strategic shift towards high-quality, comprehensive trade agreements designed to support India&rsquo;s domestic manufacturing, services exports, and integration into resilient global value chains.
India-UK CETA
India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies from the current about USD 56 billion by 2030.
India will cut import duty on Scotch whisky and gin from the UK to 75 per cent initially and to 40 per cent by the 10th year. At present, it is 150 per cent.
Tariffs on automotive imports will go from over 100 per cent to 10 per cent under quotas on both sides.&nbsp;

India and the UK have signed a landmark Free Trade Agreement, enhancing market access and boosting bilateral trade by $34 billion annually.

India and UK Formalize Landmark Free Trade Agreement 

India-UK Seal Landmark Free Trade Agreement

India and the UK have signed a landmark Free Trade Agreement, enhancing market access and boosting bilateral trade by $34 billion annually.

India and the UK on Thursday inked a landmark free trade agreement (FTA) that will cut tariffs on British whisky, cars and an array of items, besides boosting bilateral trade by around USD 34 billion annually.
The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
The FTA is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket, according to Indian officials.
The deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, they said.
&nbsp;
<blockquote class="twitter-tweet">
Congratulations to Prime Minister <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@NarendraModi</a> ji, UK Prime Minister <a href="https://twitter.com/Keir_Starmer?ref_src=twsrc%5Etfw">@Keir_Starmer</a>, and the people of India &amp; the United Kingdom on the signing of the landmark India-UK Comprehensive Economic and Trade Agreement (CETA). Duty-free access for about 99% of Indian exports unlocks&hellip; <a href="https://t.co/AWAwVTwtrg">pic.twitter.com/AWAwVTwtrg</a>
&mdash; Piyush Goyal (@PiyushGoyal) <a href="https://twitter.com/PiyushGoyal/status/1948325701847073039?ref_src=twsrc%5Etfw">July 24, 2025</a></blockquote>
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The UK said Indian consumers will benefit from improved access to the best British products -- from soft drinks and cosmetics to cars and medical devices -- as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in.
The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses' exports to the UK, it said in a statement, hours before the FTA was inked.
"Our landmark trade deal with India is a major win for Britain," Starmer was quoted as saying in the readout.
Indian officials said India's landmark free trade pact with the UK will benefit it significantly as the deal will ensure the elimination of tariffs on approximately 99 per cent of tariff lines, covering nearly 100 per cent of the trade value.
The FTA is also set to make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket, they said.

free trade agreement

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