Keir Starmer turned India-UK FTA into his tenure defining deal. Here's how

The India-UK Comprehensive Economic and Trade Agreement (CETA), concluded after 14 rounds of negotiations spanning over three years, will enter into force on...

What Happened

The India-UK Comprehensive Economic and Trade Agreement (CETA), concluded after 14 rounds of negotiations spanning over three years, will enter into force on July 15, 2026.
Negotiations were launched in January 2022 under the previous UK government; the Starmer-led Labour government, which took office in July 2024, prioritised early conclusion as a strategic goal of its foreign economic policy.
The agreement was concluded in principle on May 6, 2025, and formally signed on July 24, 2025 — making it the UK's most economically significant bilateral trade deal since exiting the European Union.
The deal establishes a next-generation economic corridor between two large English-speaking democracies, covering goods, services, investment, digital trade, intellectual property, government procurement, and sustainability across 30 chapters.
Bilateral trade (currently $25.12 billion) is targeted to reach $100 billion by 2030, underpinned by complementary economic structures: India's manufacturing and services capacity against UK's financial services, higher education, and high-value goods.

Static Topic Bridges

India-UK Bilateral Relations: Historical and Strategic Context

India and the United Kingdom share one of the world's most layered bilateral relationships — rooted in colonial history but restructured post-independence into a modern partnership across trade, defence, education, and diaspora ties. The UK is home to approximately 1.8 million people of Indian origin, the largest diaspora community in the country, making the people-to-people dimension central to diplomatic engagement. The two countries formalised a "Living Bridge" partnership in 2015, later upgraded to a Comprehensive Strategic Partnership in 2021.

India-UK Comprehensive Strategic Partnership (2021): Framework for defence, health, climate, and trade cooperation.
UK-India FTA negotiations launched: January 22, 2022.
14 rounds of negotiations over 3+ years before conclusion in May 2025.
CETA signed: July 24, 2025; enters into force: July 15, 2026.
India's diaspora in UK: ~1.8 million persons of Indian origin.

Connection to this news: The CETA is the economic pillar of the India-UK Comprehensive Strategic Partnership — converting a geopolitical relationship into a structured trade architecture for the first time.

Brexit and the UK's Global Trade Strategy

Brexit — the United Kingdom's withdrawal from the European Union, effective January 31, 2020 — fundamentally reshaped UK trade policy. Previously, the UK's trade relations were governed through EU-wide trade agreements. Post-Brexit, the UK needed to negotiate independent FTAs. The India-UK CETA is one of the most significant FTAs in the UK's post-Brexit portfolio, alongside agreements with Australia (UK-Australia FTA, 2023) and Japan (UK-Japan Comprehensive Economic Partnership, 2021).

Brexit effective date: January 31, 2020 (Withdrawal Agreement); transition period ended December 31, 2020.
UK regained independent trade policy authority from January 1, 2021.
UK-Japan CEPA: Signed September 2020, provisionally applied from January 2021.
UK-Australia FTA: Signed December 2021, in force May 2023.
India-UK CETA: Most economically significant post-Brexit deal; first with a South Asian country.

Connection to this news: For the UK, the India-UK CETA represents the most ambitious post-Brexit bilateral trade agreement in scope, given India's $3.5 trillion economy and 1.4 billion consumer market.

India's FTA Strategy and Comparative Deals

India has historically been cautious about comprehensive FTAs, citing experiences where agreements led to import surges without proportionate export gains (e.g., ASEAN FTA concerns). The new generation of Indian FTAs — starting with the UAE CEPA (2022) and Australia ECTA (2022) — are structured with sensitive lists to protect vulnerable domestic sectors, rules of origin requirements to prevent trade deflection, and reciprocal services liberalisation. The India-UK CETA follows this template at higher ambition and scope.

India-UAE CEPA (May 2022): India's first CEPA; $100 billion trade target; covers goods, services, IP.
India-Australia ECTA (December 2022): Early Harvest interim deal; 96% of Indian exports to Australia duty-free.
India-UK CETA (2025–26): 30 chapters; 99% Indian exports duty-free; services across 137 sub-sectors.
Rules of origin: Specify minimum domestic content/processing required for goods to qualify for preferential tariffs — prevents "tariff shopping" through third countries.
India's sensitive list includes EVs (mass market), agriculture, and certain manufactured goods.

Connection to this news: The India-UK CETA represents the most comprehensive trade deal India has concluded with any country to date in terms of chapter coverage, services depth, and digital trade provisions.

People-to-People Ties and the Mobility Chapter

FTAs increasingly include chapters on the temporary movement of natural persons (Mode 4 under GATS — General Agreement on Trade in Services), allowing service providers to move between countries to deliver services. The India-UK CETA's mobility commitments are particularly significant given India's large professional services export sector.

20,000 service supplier visas annually for Indian professionals in IT, finance, and engineering.
3,000 two-year post-study work visas for Indian graduates completing education in the UK.
Visa processing time for CETA applicants: within 10 working days.
Mode 4 under GATS: Temporary movement of natural persons as a mode of services trade.
India is the world's largest source of international students in several UK universities.

Connection to this news: The mobility provisions directly address one of India's longstanding demands in trade negotiations — reciprocal access for skilled workers and professionals, not just goods.

Digital Trade and Intellectual Property in Modern FTAs

Modern "next-generation" trade agreements extend beyond traditional tariff schedules to include digital trade (e-commerce, data flows, digital payments) and intellectual property rights (patents, copyrights, geographical indications). The India-UK CETA's 30-chapter structure includes provisions on digital trade and IP — particularly relevant given India's large digital economy and IT services sector and the UK's leadership in fintech and creative industries.

TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights): WTO framework governing IP in trade; forms baseline for FTA IP chapters.
Geographical Indications (GIs): Protect products linked to specific regions (e.g., Darjeeling Tea, Kolhapuri Chappal); India sought GI recognition in the UK market.
Digital trade chapters: Govern cross-border data flows, prohibit unjustified data localisation, and facilitate e-commerce.
India has 2,000+ registered GIs; UK market access for Indian GIs is a specific CETA benefit.

Connection to this news: The CETA's IP and digital trade provisions extend the agreement's benefit beyond physical goods into the knowledge economy — significant for India's software, pharmaceutical, and cultural industries.

Key Facts & Data

Negotiations launched: January 22, 2022
Rounds completed: 14 rounds
Agreement in principle: May 6, 2025
Formal signing: July 24, 2025
Entry into force: July 15, 2026
Chapters: 30 (goods, services, investment, digital trade, IP, government procurement, SMEs, sustainability)
Indian exports: 99% duty-free access immediately; covers nearly 100% of export value
UK exports to India: 89.5% tariff lines, 91% of export value opened
Services: 12 major sectors, 137 sub-sectors covered
Bilateral trade (2025–26): $25.12 billion; target $100 billion by 2030
Indian diaspora in UK: ~1.8 million
Service supplier visas: 20,000 per year for Indian professionals
Post-study visas: 3,000 per year for Indian graduates
UK-India FTA context: UK's most significant trade deal since Brexit
India context: India's most comprehensive FTA to date by chapter scope