The India–UK Trade Deal 2025, signed by Modi and Starmer, will boost trade by £25.5 billion by 2040, creating 7,000 UK jobs and reshaping bilateral ties.
Mumbai | October 9, 2025 | The Interview Times — The India–UK Trade Deal 2025 marks a historic milestone in Indo–UK relations, with Prime Minister Narendra Modi and UK Prime Minister Keir Starmer unveiling a transformative phase in economic cooperation. The deal — formally known as the Comprehensive Economic and Trade Agreement (CETA) — is set to redefine the trade, investment, and strategic relationship between the two nations.
Starmer’s First India Visit Yields Record Investments
During his first official visit to India as UK Prime Minister, Starmer met Modi in Mumbai to advance the India–UK Trade Deal 2025, which was signed in July 2025. This agreement stands as the UK’s most significant trade pact post-Brexit, aiming to accelerate bilateral trade growth and job creation over the next 15 years.
Accompanied by the largest-ever UK trade delegation to India, including 125 business leaders and academic executives, Starmer reaffirmed Britain’s long-term commitment to Indian markets. The mission has already yielded results, with 64 Indian companies pledging £1.3 billion ($1.75 billion) in UK investments — projected to create 7,000 high-skilled jobs.
Starmer described it as “the biggest trade mission the United Kingdom has ever sent to India,” reflecting growing confidence in the partnership’s economic potential.
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Key Features of the India–UK Trade Deal 2025
Under the CETA framework, the UK will remove tariffs on 99% of Indian imports over the next decade, while India will offer tariff-free access on 85% of UK goods.
The following sectors stand to benefit the most:
- British whisky, cosmetics, and medical devices
- Indian textiles, footwear, and processed food products
Experts project that the India–UK Trade Deal 2025 could increase bilateral trade by £25.5 billion by 2040, boosting industries on both sides.
Shifting Global Trade Dynamics
This landmark deal also reflects a strategic shift amid rising US tariffs on Indian goods, pushing both countries to diversify partnerships.
In 2024, India exported £25.5 billion worth of goods and services to the UK while importing £17.1 billion, yielding a trade surplus of £8.4 billion. Despite this, India accounted for just 2.4% of the UK’s total trade volume, ranking 11th among its global partners.
The India–UK Trade Deal 2025 aims to close this gap, positioning India as one of the UK’s top trading partners by 2040.
Modi and Starmer Highlight Mutual Gains
Other issues that featured prominently in our talks included technology, defence, AI, sustainable development, renewable energy and more. It was also a delight to meet the Vice Chancellors of various UK universities. We will keep furthering educational and cultural linkages with… pic.twitter.com/dqKwNhSOn7
— Narendra Modi (@narendramodi) October 9, 2025
At the joint press conference, Prime Minister Modi stated:
“Import costs between the two countries will come down, new employment opportunities will be generated for the youth, trade will increase and this will benefit our industries and consumers.”
Keir Starmer hailed the pact as a “breakthrough moment, years in the making,” symbolizing “renewed trust and shared vision between two global partners.”
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The Road Ahead
Both leaders confirmed their commitment to implement the India–UK Trade Deal 2025 within the next year, pending UK Parliamentary ratification. With strong business participation, this agreement is expected to drive cooperation in innovation, green energy, digital technology, and higher education.
This historic partnership represents a defining chapter in global trade realignment, as India and the UK unlock new opportunities for prosperity, sustainability, and strategic collaboration.
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