The core of the “new pacts” unveiled during Prime Minister Modi’s meeting with UK Prime Minister Keir Starmer centers around leveraging and advancing the India-UK Comprehensive Economic and Trade Agreement (CETA), which was already signed in July of the same year (2025).

Here are the full details on the economic and other key ties strengthened during the visit:

1. India-UK Comprehensive Economic and Trade Agreement (CETA)/Free Trade Agreement (FTA)

• Status and Focus: The CETA/FTA, signed in July 2025, was the central focus. Both leaders, especially PM Starmer, stressed the urgency of its implementation, calling for it to be done as soon as “humanly possible.” Starmer described it as a “launchpad for growth” and the UK’s largest trade deal since Brexit.
• Key Economic Impact:
  • It is expected to increase bilateral trade by approximately £25.5 billion ($34 billion) by 2040 and aims to double bilateral trade by 2030.
  • Tariff Reduction for UK Goods in India: India’s average tariffs on British products will drop significantly (from around 15% to 3%).
  • Specific Benefits for UK Industries:
    • Scotch Whisky: Duties will be cut from 150% to 75% immediately, reducing further to 40% over the next decade, a major boost for the industry.
    • Easier access for UK goods like cosmetics, cars, soft drinks, and medical devices.
  • Specific Benefits for Indian Industries: India will see reduced duties on items like clothing, footwear, food products (including frozen prawns), textiles, leather, gems and jewellery, and engineering goods in the UK market.

2. New Agreements and Commitments

During Keir Starmer’s visit to India (accompanied by the UK’s largest trade delegation in a decade), the following specific pacts and commitments were announced to deepen ties and push the CETA forward:

• Repositioning of Joint Economic and Trade Committee (JETCO): India and the UK signed the Terms of Reference to reposition the Joint Economic and Trade Committee (JETCO), aiming to provide a stronger framework for trade cooperation and accelerate the implementation of the CETA.
• New Investments: Indian companies announced investments of over £1 billion into the UK, expected to create nearly 7,000 new jobs across various UK regions in sectors like electric motorbikes, semi-conductors, and agricultural innovation.
• Cooperation on Critical Minerals: An Industry Guild and Supply Chain Observatory will be established for collaboration on critical minerals.

3. Expanded Cooperation Beyond Trade

The bilateral talks and agreements also covered a broader strategic partnership:

• Education:
  • It was confirmed that nine UK universities will establish campuses in India.
  • Three UK universities will specifically set up campuses in the GIFT City (Gujarat International Finance Tec-City).
• Defence and Security:
  • Commitment to enhancing maritime security cooperation in the Indo-Pacific region.
  • Agreement on cooperation in military training, including Indian Air Force flying instructors serving as trainers in the UK’s Royal Air Force.
  • Cooperation in defence technology.
• Technology and Innovation: Discussions and cooperation were emphasized in areas like Artificial Intelligence (AI) and telecommunications.
• Cultural and Film Ties: An agreement between the British Film Institute (BFI) and the National Film Development Corporation (NFDC) to boost co-productions and joint film projects was hailed, with an announcement that major productions from Yash Raj Films would be shot in the UK from 2026.

PM Modi called India and the UK “natural partners,” driven by “trustworthiness, talent, and technology,” while PM Starmer lauded India’s “remarkable growth story” and its path to becoming a developed nation by 2047, confirming the UK’s desire to be a key partner on that journey.