hen Prime Minister Narendra Modi and UK PM Keir Starmer clasped hands at Chequers on July 24, 2025, it wasn’t just a photo op. It was the culmination of three years of hard bargaining that has now made headlines everywhere – from London’s Fleet Street to Bengaluru’s startup corridors.
What Happened?
India and the UK signed their Comprehensive Economic and Trade Agreement (CETA), billed as the UK’s biggest post-Brexit trade pact. It slashes tariffs, opens service sectors, simplifies customs, and gives professionals a pathway to work across borders.
This deal:
- Removes tariffs on 99% of Indian exports to the UK.
- Cuts import duties on UK goods (whisky, auto parts, chemicals) gradually over a decade.
- Streamlines visas and exempts Indian IT workers from UK national insurance contributions for three years.
Why Is It Trending?
Because it’s a high-stakes chess move in a post-Brexit, post-pandemic global economy. Every major outlet has plastered it on front pages:
- The Guardian called it a historic day for UK-India relations.
- Livemint and Moneycontrol highlight huge potential for gems, jewellery, textiles, and IT professionals.
- FT focused on British carmakers fuming over quotas and delayed tariff relief.
Even Dalal Street took notice, with markets weighing the boost for export-driven sectors.
Strategic Ripples
This is more than trade. It signals:
- India’s shift away from over-reliance on the U.S. market.
- A blueprint for EU and U.S. trade deals next.
- A new global ambition from New Delhi – leveraging trade as a geopolitical tool.
The Road Ahead
While the deal is signed, ratification in both parliaments is pending. The UK will watch how Indian MSMEs respond, and India will watch how quickly promised access translates into export numbers.
My take: This deal has the buzz of a blockbuster – but like any Bollywood movie, the box-office numbers (real gains) will decide whether it’s a classic or just a well-marketed debut.
Question for readers: Will this trade deal actually change India’s export game – or will red tape and quotas slow the momentum?
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