"Prime Minister Narendra Modi announces that 6 British universities will establish campuses in India"
The India-UK Comprehensive Strategic Partnership has taken a significant leap forward with the signing of the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025, at Chequers. This historic deal, signed by Prime Minister Narendra Modi and Keir Starmer, is set to enhance economic, educational, and societal ties between the two nations.
The CETA aims to double India-UK imports and exports to over $100 billion by 2030. Key sectors set to benefit from this agreement include trade and economy, defence and security, education, financial and professional services, and climate and clean energy.
In the trade and economy sector, reductions in tariffs on aerospace, automotives, and electrical machinery will significantly boost trade. Indian agricultural and processed food products will enjoy duty-free access to the UK market, potentially increasing agri exports by over 20% in three years.
The defence and security sector will see a Defence Industrial Roadmap to promote collaboration in co-design, co-development, and co-production of defence products. Enhanced defence and security ties are expected to deepen through regular armed forces engagements.
Growing educational collaborations are highlighted, with six UK universities working to open operations in India. The partnership aims to enhance research and educational exchanges, fostering innovation and growth.
The agreement provides locked-in access for UK financial services companies to India’s growing market, ensuring equal treatment with domestic suppliers. The binding of India’s foreign investment cap for the insurance sector will facilitate UK investment.
The partnership will facilitate access for UK companies to India’s renewable energy market as India transitions to green energy.
The CETA could increase UK exports to India by nearly 60% and bilateral trade by 39% in the long run. Thousands of British jobs are expected to be created, with £6 billion in new investment and export wins announced.
The deal is also expected to promote inclusive growth, benefiting various sectors in India, including farmers, artisans, MSMEs, startups, and innovators. It is designed to enhance collaboration in advanced technologies and green finance.
The Southampton university opened a campus in Gurugram, India, on July 16, 2025, marking it as the first foreign university to open a foreign campus in India. This move is part of the growing educational collaborations between the two countries.
The total trade of goods and services between India and the UK amounted to 42.6 billion euros in the fourth quarter of 2024, making India the UK's 11th largest trading partner. The confidence of businesses is expected to increase as a result of the FTA.
The FTA seeks to open up the Indian markets for textiles, footwear, gems, seafood, and engineering goods to the UK. The cost of doing business is expected to go down as a result of the FTA.
India and the UK share a strong partnership, elevated to Comprehensive Strategic Partnership in 2021, focusing on sectors such as trade, defence, energy, education, and people-to-people ties. This latest development in their relationship is set to further strengthen these bonds and bring about mutual growth and prosperity.
- The Comprehensive Economic and Trade Agreement (CETA) aims to double India-UK imports and exports to over $100 billion by 2030, with key sectors benefiting from this agreement including education, trade and economy, defense and security, financial and professional services, and climate and clean energy.
- The agreement provides locked-in access for UK financial services companies to India’s growing market, ensuring equal treatment with domestic suppliers, and the binding of India’s foreign investment cap for the insurance sector will facilitate UK investment.
- Growing educational collaborations are highlighted, with six UK universities working to open operations in India, potentially increasing research, educational exchanges, fostering innovation, and promoting economic and societal growth.
