India-UK Trade Pact to Take Effect from July 15, PM Modi Calls It a Historic Step in Bilateral Ties

Evian, June 2026 : Prime Minister Narendra Modi on Wednesday announced that the India-UK Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, 2026, describing the landmark pact as a transformative development that will deepen economic cooperation and create new growth opportunities for both nations.

Speaking on the sidelines of the G7 Summit in Evian, PM Modi said the agreement represents a major milestone in India-UK relations and is expected to significantly strengthen trade, investment and business partnerships. He emphasized that the pact would not only enhance commercial engagement between the two countries but also deliver tangible benefits to a wide range of stakeholders, including farmers, workers, startups, innovators and micro, small and medium enterprises (MSMEs).

According to the Prime Minister, the trade agreement aligns closely with India’s long-term development vision and will contribute to the country’s goal of becoming a developed nation by 2047 under the Viksit Bharat initiative.

Highlighting the significance of the agreement, Modi said both he and British Prime Minister Keir Starmer were pleased with the momentum the pact would bring to bilateral economic relations. He noted that the agreement is expected to unlock fresh opportunities for businesses and investors while further strengthening the strategic partnership between India and the United Kingdom.

The India-UK trade deal has been under discussion for several years, involving extensive negotiations on key issues such as tariff reductions, market access, services, investment protection and regulatory cooperation. Officials from both countries have described the pact as one of the most comprehensive bilateral trade agreements negotiated by India in recent years.

Economic experts believe the agreement will provide a significant boost to trade flows by lowering barriers and improving market access for goods and services. The pact is also expected to encourage greater collaboration in critical sectors including technology, pharmaceuticals, renewable energy, advanced manufacturing and financial services.

India and the United Kingdom already share robust economic ties, with bilateral trade exceeding £36 billion in 2025. Policymakers expect the implementation of CETA to accelerate this growth further by creating a more predictable and business-friendly environment for companies operating in both markets.

Beyond its economic impact, the agreement is also seen as strategically important. Analysts note that the pact reinforces India’s role as a key partner for the UK in the Indo-Pacific region while helping both countries diversify supply chains and enhance resilience against global economic uncertainties. The agreement is expected to support innovation-led growth and encourage long-term investments across multiple sectors.

The formal implementation of the trade agreement on July 15 will be marked by official events in both New Delhi and London, reflecting the importance attached to the partnership by the two governments.

With the launch date now confirmed, businesses and investors in both countries are preparing to capitalize on the new opportunities expected to emerge under the comprehensive framework. The agreement is widely viewed as a major step toward expanding economic integration, strengthening strategic cooperation and ushering in a new phase of India-UK relations.