PM Modi says India-UK trade pact will cut import costs, create jobs; Starmer calls it ‘breakthrough moment’

Prime Minister Narendra Modi on Thursday said the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom will lower import costs, generate new jobs and boost bilateral trade.

Addressing a joint press meet after holding talks with the British Prime Minister, Modi said, “I am happy to welcome Prime Minister Keir Starmer on his first visit to India. Under his leadership, India and the UK’s relationship has grown stronger.”

During PM Modi’s visit to the UK in July, the two countries agreed upon the Comprehensive Economic and Trade Agreement (CETA).

“With this agreement, the import cost 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,” Modi added.

Referring to the large delegation accompanying Starmer, Modi said it is a “symbol of the new vigour in India-UK partnership.”

Modi asserted that the foundation of the India-UK relationship is the shared belief in values such as democracy, freedom, and the rule of law.

The duo also discussed peace and stability in West Asia, the Indo-Pacific, and the Ukraine conflict.

He said India is fully committed to enhancing maritime security cooperation with the UK in the Indo-Pacific region.

"On the Ukraine conflict and the Gaza issue, India supports finding solutions through dialogue and diplomacy," Modi said.

Starmer, who is on a two-day visit to India from October 8–9, held talks with Modi to review progress under the Vision 2035 roadmap for the India–UK Comprehensive Strategic Partnership. The roadmap outlines cooperation across trade and investment, technology, defence, climate, health, education, and people-to-people ties.

Starmer described the pact as a ‘breakthrough moment’ that reflects the confidence and shared ambition of both nations.

“We are building something here, we are creating a new modern partnership focused on the future and availing the opportunities — and we are doing it together,” the UK Prime Minister said.

"That is why we struck the UK-India Comprehensive Economic and Trade Agreement (CETA) in July, a breakthrough moment - years in the making, slashing tariffs, increasing access to each other's markets to drive growth and create jobs for our people and making life in both our nations."

Ahead of the leaders’ meeting, Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Peter Kyle met in Mumbai on Wednesday to chart the way forward for implementing CETA.

The two ministers agreed to reposition the Joint Economic and Trade Committee (JETCO) to oversee the agreement’s delivery and reaffirmed their commitment to ensuring “swift, coordinated, and results-oriented” implementation.

Goyal and Kyle also discussed maximising the benefits of CETA through regulatory cooperation, reducing non-tariff barriers, and promoting supply chain integration. Both sides underlined the importance of building resilient and diversified supply chains amid global economic uncertainties.