In a landmark meeting in Mumbai, Prime Ministers Narendra Modi and Keir Starmer set the stage for a new era of India-UK cooperation, finalizing frameworks to accelerate the long-awaited Comprehensive Economic and Trade Agreement (CETA) and expanding defence collaboration.

India-UK Comprehensive Economic and Trade Agreement (CETA) 

The two countries signed the Terms of Reference (ToR) to reposition the Joint Economic and Trade Committee (JETCO) on October 9. The move aims to provide a solid framework for trade cooperation and accelerate the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, which awaits ratification.

The announcement followed a high-level meeting between UK Prime Minister Keir Starmer and India's Prime Minister Narendra Modi in Mumbai.

“The path-breaking India-UK CETA will create new job opportunities for youth, expand trade and benefit both our industries as well as consumers. In this context, PM Starmer and I discussed trade linkages and economic ties between our nations in the times to come,” Modi said in a post on X.

Defense Order

In a parallel development, the UK government signed a £350 million contract to supply the Indian Army with Lightweight Multirole Missiles manufactured by Thales in Northern Ireland. The deal is expected to secure 700 jobs at the factory, which currently produces the same weapons for Ukraine, and signals a deepening defence partnership between the two nations.

India's £1.3 billion Investments

The UK also announced nearly 7,000 new jobs across the United Kingdom following a series of major investment deals. A total of 64 Indian companies have committed over £1.3 billion in investments across multiple sectors, including engineering, technology, creative industries, and advanced manufacturing, demonstrating strong confidence in the UK as a global business hub.

Key investments include TVS Motor's £250 million expansion in Solihull for next-generation electric vehicles, Cyient's £100 million boost in semiconductor and clean energy innovation, and Atul–Date Palm Developments' £11 million Agri-tech R & D facility in Somerset, creating 44 skilled jobs.

Other commitments include Mastek's AI and Experience Centre in London and Leeds, NeoCeltic Global's orthopaedic solutions facility, and Alcor Logistics' £4 million expansion into Liverpool and London.

Business and Trade Secretary Peter Kyle highlighted the opportunities arising from India's position as the fourth-largest economy, with the UK-India trade deal accelerating collaboration in emerging technologies such as AI, semiconductors, biotechnology, and critical minerals. These developments signal a new era of bilateral economic partnership, supporting skilled employment and regional development across the UK.

No Visa Relaxation

Starmer has ruled out any relaxation of visa rules for Indian workers or students, emphasizing that the new India-UK trade deal is focused on business and investment rather than immigration.

The visit comes at a critical time as India seeks to strengthen its relationship with the UK and the European Union, following the souring of its trade partnership with the United States. Earlier this year, US President Donald Trump imposed a 50% tariff on Indian goods, the highest in the world.

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