India-U.K. CETA Operationalised; PM Modi Says Deal to Boost Farmers, MSMEs

The India-U.K. Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, 2026, marking a new phase in bilateral economic relations. Prime Minister Narendra Modi stated that the agreement will provide fresh momentum to farmers, entrepreneurs, and micro, small, and medium enterprises (MSMEs).

In a post on social media, Mr. Modi said, “The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs. Several vibrant sectors will gain stronger access to the U.K. market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent.”

The Double Contribution Convention, a social security agreement between India and the U.K. that also took effect on the same day, is expected to benefit Indian professionals working temporarily in the U.K. Mr. Modi noted that this will provide “invaluable support to Indian professionals” and strengthen the competitiveness of Indian enterprises.

Commerce Minister Piyush Goyal highlighted the benefits across sectors. “The India-UK FTA creates unprecedented opportunities for our textiles, leather, gems & jewellery, engineering goods, marine products, chemicals, processed foods, MSMEs, farmers and manufacturers,” he said. “It also opens new frontiers for our IT, professional, financial, education and business services sectors, while expanding mobility for Indian talent.”

Harjinder Kang, the U.K. Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, described the agreement as a “watershed moment for the U.K.-India partnership.” Speaking at an event in New Delhi, he said the deal is designed to benefit businesses and consumers from day one with cheaper, quicker, and easier trade.

Indian industry bodies also welcomed the agreement. Rajeev Singh, Director General of the Indian Chamber of Commerce, pointed out that securing duty-free access for 99% of Indian exports is a significant achievement. “Textiles stand out in particular. Our exporters in Tirupur and Surat have long operated at a duty disadvantage against Bangladesh and Cambodia in the U.K. market, and that gap now closes,” he said. He added that marine products, pharmaceuticals, leather, and engineering goods also stand to gain.

Chandrajit Banerjee, Director General of the Confederation of India Industry, highlighted gains in services. “Enhanced market access across IT, financial, professional, education and healthcare services, together with improved mobility provisions and the Double Contribution Convention, will strengthen the global competitiveness of Indian companies and professionals in the U.K.,” he said. He also noted that provisions on digital trade, government procurement, innovation, intellectual property, MSMEs, and labour make the agreement future-ready, creating opportunities for startups, Global Capability Centres, and collaboration in emerging technologies such as artificial intelligence.