India and the United Kingdom have signed a landmark Comprehensive Economic and Trade Agreement (CETA) on July 24 in the presence of Prime Minister Narendra Modi and UK counterpart Keir Starmer. The trade agreement was officially formalised after the Commerce and Industry Minister Piyush Goyal and British counterpart Jonathan Reynolds signed the document.
The new agreement between the two countries is aimed at improving the bilateral trade between the nations. Furthermore, multiple goods will become cheaper for India and the UK, benefiting consumers of various industries, including the automotive industry.
Also Read: MG Cyberster Electric Sports Car To Launch Tomorrow: Specs, Top Speed, Range, Features
"This CETA marks a milestone in the trade relations between two major economies, setting an ambitious and balanced framework. It unlocks tariff-free access on 99% of Indian exports to the UK, covering nearly 100% of trade value- including labour-intensive sectors advancing the 'Make in India' initiative and setting the stage for bilateral trade to double by 2030."
The FTA is expected to bring tariff cuts to automobiles with reductions from 110 to 10 per cent on certain models made by British manufacturers. It is to be noted that the United Kingdom is home to multiple automakers operating in the Indian market, including Land Rover, Jaguar (both owned by Tata Motors), Lotus, Rolls-Royce, Bentley, McLaren, and Aston Martin.
Before the agreement can be put into effect, it must receive approval from the British Parliament, a process expected to take around one year, as per a report from PTI. However, the excitement among consumers in India had started showing effect since the announcement of successful negotiations between the two countries on 6 May 2025. Reports suggest, the consumers started cancelling booking for the luxury models hoping to save money once the FTA was finalised.
Track Latest News Live on NDTV.com and get news updates from India and around the world
