India Secures Major Trade Deals at G7: UK FTA July 15, EU by Year-End

India has made significant strides in its international trade agenda, securing major agreements and advancing crucial negotiations during and immediately after the G7 Summit in France, which Prime Minister Narendra Modi attended as an outreach partner. The news, published by Hindustan Times, highlights several key developments that are set to bolster India's economic ties with some of the world's largest economies. One of the most concrete outcomes is the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), which is confirmed to enter into force on July 15, 2026. This landmark agreement, which concluded negotiations on May 6, 2025, and was signed on July 24, 2025, is poised to significantly boost bilateral trade and investment between India and the UK. The CETA provides zero-duty access for approximately 99% of India's exports to the UK, covering nearly 100% of trade value. Beyond goods, the agreement is also expected to substantially expand services exports across 137 sub-sectors, including IT/ITES, professional, education, and business services. Furthermore, a related Agreement on Social Security, also known as the Double Contribution Convention (DCC), will simultaneously come into effect on July 15, 2026. This is a significant gain for Indian professionals working temporarily in the UK, as it extends the period of exemption under DCC from three to five years, reinforcing their mobility and competitiveness. Another major development concerns the India-European Union Free Trade Agreement (FTA). European Commission President Ursula von der Leyen, following her meeting with Prime Minister Modi, stated that the EU would formally sign a landmark trade deal with India by the end of 2026. Negotiations for this comprehensive FTA concluded on January 27, 2026, marking a pivotal moment in EU-India relations after years of discussions. The EU is India's largest trading partner, with bilateral trade in goods reaching €120 billion in 2024. This agreement is anticipated to potentially double EU goods exports to India by 2032 and involves the elimination or reduction of tariffs on over 96% of EU goods exports, offering privileged access to India's vast market. Discussions with the United States also yielded positive signals regarding trade. US President Donald Trump, after bilateral talks with Prime Minister Modi on the sidelines of the G7 Summit, indicated that Washington and New Delhi were 'very close' to finalising a long-awaited trade agreement. This reflects fresh momentum in India-US trade talks, with both sides actively pushing for an interim trade deal aimed at easing tariff frictions and improving market access. An interim trade agreement framework between the two nations was announced in February 2026. The US was India's second-largest trading partner in the fiscal year 2025-26, highlighting the strategic importance of this bilateral trade relationship. Beyond these major economies, India also made progress in its trade discussions with Canada. Following a meeting between PM Modi and Canadian Prime Minister Mark Carney at the G7 Summit, both leaders reaffirmed their shared objective of concluding negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in 2026. They agreed to expedite these negotiations with the aim of doubling two-way trade by 2030 and deepening cooperation across various sectors including energy, defence, and investment. This commitment follows previous engagements, including a joint statement in March where both leaders expressed satisfaction with negotiation progress. These developments underscore India's active engagement in shaping its global trade landscape and strengthening economic partnerships. The G7 Summit provided a crucial platform for these high-level discussions, aligning with India's broader economic diplomacy goals of boosting exports, attracting investments, and integrating further into global supply chains. Such trade agreements are vital for India's economic growth trajectory, supporting various domestic sectors, MSMEs, farmers, and innovators, and contributing to the vision of 'Viksit Bharat 2047' (Developed India 2047).

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