India-UK trade pact to take effect on July 15, PM Modi hails milestone
Evian, June 17
Prime Minister Narendra Modi on Wednesday announced that the India-UK Comprehensive Economic and Trade Agreement will formally enter into force on 15 July 2026, marking what he described as a "historic milestone" in bilateral relations.
Speaking on the sidelines of the G7 Summit in Evian, PM Modi said the agreement would significantly boost trade and investment between the two countries, while also opening new opportunities for Indian farmers, workers, micro, small and medium enterprises (MSMEs), startups and innovators.
He emphasised that the pact would contribute meaningfully to the realisation of Viksit Bharat 2047.
PM Modi noted that both he and British Prime Minister Keir Starmer were "delighted" with the momentum being added to economic ties.
"This agreement will unlock numerous opportunities and strengthen our partnership further," he said in a message posted on social media.
The India-UK trade pact has been under negotiation for several years, with multiple rounds of talks covering tariff reductions, market access, services, investment protection and regulatory cooperation.
Officials have described the agreement as one of the most ambitious bilateral trade frameworks India has entered into, aimed at deepening economic integration with the United Kingdom post-Brexit.
India and the UK already share strong economic ties, with bilateral trade valued at over £36 billion in 2025. The new agreement is expected to expand this significantly by reducing barriers, enhancing cooperation in sectors such as technology, pharmaceuticals, renewable energy and financial services, and creating a more predictable environment for businesses.
The pact also carries strategic weight, reinforcing India's position as a key partner to the UK in the Indo-Pacific.
Analysts believe it will help both nations diversify supply chains, strengthen resilience against global economic shocks and foster innovation-driven growth.
The agreement's entry into force on 15 July will be accompanied by official ceremonies in New Delhi and London, underscoring the importance both governments attach to the partnership.
— IANS
Reader Comments
As a UK-based Indian, this makes me proud. The post-Brexit world needs strong partnerships like this. But I hope the fine print ensures fair wages for Indian workers and doesn't just benefit big corporations. Let's see the actual text before celebrating too much.
Excellent timing with the G7 summit. But will this really help our local startups? I've seen many trade deals where small businesses get lost in the paperwork. Hope there are concrete provisions for MSMEs and not just vague promises. Action needed, not just announcements.
Great news for both countries! The focus on renewable energy and financial services will create jobs on both sides. India's positioning in the Indo-Pacific is crucial, and this agreement strengthens that. Kudos to both governments for finally getting this done.
Finally! After years of negotiations, this is a big win. But I'm concerned about the impact on Indian farmers—the UK has strict agricultural standards that might be hard for small farmers to meet. The government needs to provide proper training and support. Otherwise, it's just the big players benefiting.
This is what 'Viksit Bharat' looks like in action—strong global partnerships that bring real economic benefits. The pharmaceutical sector especially could be a game-changer. Imagine Indian generic drugs reaching more UK patients at affordable prices. Win-win for everyone! 🚀
K We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.