India and UK Sign New Trade Agreement to Boost Exports
India and the United Kingdom have signed the Comprehensive Economic and Trade Agreement (CETA), a deal expected to open new opportunities for businesses in both countries. The agreement, signed on July 24, 2025, in London, aims to make trade easier and increase economic ties. Both nations hope this move will build a stronger relationship and boost exports, especially for Micro, Small, and Medium Enterprises (MSMEs).
What This Deal Means
The CETA is set to unlock a $23billion trade corridor. This means India and the UK can now buy and sell goods and services more freely. For Indian MSMEs, this deal is important. Many small businesses in India make products for export. CETA is expected to help them reach the UK market more easily and sell more goods.
Key Points About the India-UK CETA
- The agreement was signed during Prime Minister Narendra Modi’s official visit to London.
- It is one of the biggest trade deals signed by India to date.
- The deal aims to reduce tariffs and trade barriers, making it simpler for businesses to export and import.
- Special focus is on boosting MSME exports and creating more jobs.
Impact on MSMEs
Many small businesses often find it hard to enter foreign markets. High tariffs, paperwork, and complicated rules slow them down. The India-UK CETA promises to simplify these processes. MSMEs will benefit through easier paperwork, lower costs, and more support for business partnerships.
Why This Trade Deal Matters
This agreement is not just good news for big corporations but also for smaller businesses and workers in both countries. By unlocking trade worth $23billion, both India and the UK hope to increase economic growth, create jobs, and give consumers more choices.
What Happens Next?
The governments of India and the UK will now work on implementing the agreement. Business groups welcome the move and expect positive changes in the way goods and services move between the two nations. Both sides are hopeful that this deal will lead to stronger business ties and more benefits for people in India and the UK.
In summary, the new India-UK CETA deal is a positive step for trade, jobs, and small businesses. Both countries look forward to a future of closer economic partnership.