PM Modi in Tamil Nadu: UK FTA shows world’s trust in India, country’s self confidence

Prime Minister Narendra Modi with UK counterpart Keir Starmer

Prime Minister Narendra Modi on Saturday said that the “historic” free trade agreement (FTA) with United Kingdom represents the growing trust in India.

“During my foreign visit, the historic India-UK Free Trade Agreement was signed. This represents the world’s growing trust in India and India’s new self-confidence. We will build a 'Viksit Bharat' with this self-confidence,” the Prime Minister said in Tamil Nadu.

The landmark FTA, known as the Comprehensive Economic and Trade Agreement (CETA), was signed during PM Modi's visit to the UK. The agreement was signed by Commerce and Industry Minister, Piyush Goyal and Secretary of State for Business and Trade, Jonathan Reynolds in the presence of PM Modi and his UK counterpart Keir Starmer.

"After this FTA agreement, 99% of Indian products sold in Britain will be tax-free. When Indian goods are cheaper in Britain, their demand will increase. The India–Britain FTA will benefit Tamil Nadu's youth, our small industries, MSMEs, and start-ups the most," the Prime Minister said.

The Prime arrived in Tamil Nadu after concluding his two-day official visit to the UK followed by Maldives. Modi was hosted by Starmer at Chequers – the official country residence of the British Prime Minister – for an intense session of talks that also covered regional and global issues of mutual interest.

“Concluding a very important UK visit. The outcomes of this visit will benefit our future generations and contribute to shared growth and prosperity. Gratitude to the PM Keir Starmer, the UK government and people for their warmth,” Modi said in a statement on social media.

CETA secures unprecedented duty-free access for 99 per cent of India’s exports to the UK, covering nearly the entire trade basket. This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals.

As the world’s fourth and sixth largest economies respectively, India and the UK’s bilateral engagement holds global economic significance. The bilateral trade between the two countries stand at nearly $56 billion, with a joint goal to double this figure by 2030.