PM Narendra Modi’s UK and Maldives visit marks a new era of diplomatic breakthrough: CETA deal, strategic cooperation, and economic aid drive India’s global rise

Prime Minister Narendra Modi’s visit to England and Maldives has propelled India a newer height on the global stage. The historic agreements signed with these two countries have further strengthened India’s economic, strategic and cultural influence. This visit is a great example of India’s ‘Neighbourhood First’ as well as ‘SAGAR’ (Security and Growth for All in the Region) policy.

As PM Modi’s UK and Maldives visit garner global attention, let’s look at what agreements were signed and what impact they will have on India’s future.

CETA agreement during PM Modi’s visit to England

India and the United Kingdom (UK) signed the Comprehensive Economic and Trade Agreement (CETA) during PM Narendra Modi’s visit to England on July 24, 2025. The agreement is the result of three years of hard work and 14 rounds of complex negotiations. It was signed by Commerce and Industry Minister Piyush Goyal on behalf of India and Business and Trade Secretary Jonathan Reynolds on behalf of the UK.

PM Modi, UK Prime Minister Keir Starmer, External Affairs Minister S. Jaishankar, and UK Chancellor Rachel Reeves were also present on this historic occasion. This agreement is going to give India a new position in global trade.

Key highlights of the CETA

CETA was launched in 2022, when the UK was looking for new trading partners after Brexit. India also wanted to accelerate its mission of ‘Atmanirbhar Bharat’ and ‘Make in India’ at the time. The three-year negotiations covered many difficult issues, such as tariff reduction, visa rules, intellectual property rights (IPR) and protection of sensitive sectors. On 6^th May 2025, the two countries agreed in principle on the agreement, and on 22^nd July 2025, the Union Cabinet of India approved it. Finally, the agreement was signed on 24^th July 2025 in the presence of Prime Minister Modi and his UK counterpart Keir Starmer.

This agreement holds special value as it not confined to just trade but also covers goods, services, investment, intellectual property, and professional mobility. This is a big step for India towards economic growth, job creation, and global leadership.

Benefits of CETA to India

Zero tariff on 99% of exports

• 99% of goods going from India to the UK will now be free of tariffs. This will give a huge boost to exports in sectors such as textiles, leather, footwear, gems and jewellery, toys, and marine products.
• Benefits to farmers and fishermen: Zero tariff on 95% of agricultural produce will give Indian tea, coffee, turmeric, pepper, pulses, mangoes, oranges, jackfruit, and organic millets easier access to the UK’s $375 billion agricultural market. Zero tariff on 99% of marine produce will give fishermen a 20-30% increase in income.
• Protection of sensitive sectors: India excluded sectors such as dairy, apples, and edible oils from the agreement, so as not to harm local farmers and industries.
• Projected Growth: Exports from these sectors are expected to grow at 10-15% annually, creating lakhs of jobs in textile and leather hubs like Tirupur, Kanpur, and Kolkata.

Employment generation and promotion of MSMEs

• The agreement will create millions of jobs in India, especially in labour-intensive sectors like textiles, leather and jewellery.
• Small and medium enterprises (MSMEs), artisans and weavers will get a place in the global market. Intellectual property and geographical indicator (GI tag) protection will give global recognition to Indian products.
• For example, the textile industry of Tirupur and the leather industry of Kanpur will get new markets, providing new employment opportunities to local artisans and women.

Cheap imported products

• Whiskey, cars (like Jaguar, Land Rover), chocolates, cosmetics, and medical equipment like ECG and X-ray machines coming from the UK to India will be cheaper. Tariffs on whiskey will drop from 150% to 75% and to 40% over the next 10 years. Tariffs on cars will drop from 100% to 10%. This will provide Indian consumers with affordable and high-quality products, and give UK companies an opportunity to increase their share in a large market like India.

New opportunities in the service sector

• This is the first time that the UK has made such huge commitments. Indian IT/ITES, financial services, education, telecom, architecture and engineering companies will get easy access to the UK market.
• Double Contribution Convention (DCC): 75,000 Indian employees will get exemption from social security payments in the UK for 3 years. This will increase their salaries and reduce costs for companies by 20-30%.
• There will be no ‘economic needs test’ required in 36 service sectors and Indian professionals will be able to work without a local office for up to 24 months in 35 UK sectors.
• More than 1,800 Indian chefs, yoga instructors and musicians will be able to work in the UK every year.

Revolution in education sector

• Five renowned UK universities Southampton, Liverpool, York, Aberdeen and Bristol will open campuses in India. Southampton has already opened a campus in Gurugram and the rest will open in Bengaluru and Mumbai.
• This will enable Indian students to get world-class education at home and save the cost of going abroad. This will bring a big change in the education sector of India.

Investments and Startups

• Investment worth 6 billion pounds (about Rs 65,000 crore) from the UK will come to India, which will boost manufacturing, pharmaceuticals and startups. Indian startups will get access to UK investors and innovation hubs, helping in global expansion.

Economic Growth and Global Leadership

• Currently, India-UK bilateral trade is worth $56 billion (about Rs 4.7 lakh crore). CETA aims to take it to $120 billion (Rs 10 lakh crore) by 2030.
• There will be additional trade worth Rs 2.8 lakh crore by 2040, which will add 0.5-1% to India’s GDP. This agreement will accelerate India’s ‘Make in India’ mission and make India a leader in global trade.

Features of CETA

• Goods and Services Trade: The agreement covers goods, services, investments and intellectual property.
• Sustainable development: emphasis on environment, innovation, and reduction of non-tariff barriers.
• Provisions for women and MSMEs: Special facilities for trade finance and global partnerships.
• Professional Mobility: Easier visa rules for Indian professionals to work in the UK.

Calling the India-UK Free Trade Agreement ‘historic’, Commerce Minister Piyush Goyal said, “This agreement will open new doors for India’s farmers, artisans and small businessmen. It will take India towards becoming a global economic power.”

Maldives visit: From an unprecedented low to a new era in India-Maldives relations

On 25^th July 2025, PM Narendra Modi attended the 60th Independence Day celebrations of Maldives as the chief guest . This visit, at the invitation of Maldives President Mohammed Muizzu, gave new strength to the relations between the two countries after a tense period. This visit symbolised a positive change after the outrageous ‘India Out’ campaign and the ruling Maldivian government’s inclination towards China.

Background of relations with Maldives

India and Maldives have long-standing cultural, trade and strategic ties. India was the first country to establish diplomatic relations with Maldives after its independence in 1965. India helped Maldives during Operation Cactus in 1988, the 2004 tsunami and the 2014 water crisis. India also provided vaccines and economic assistance during the Covid-19 pandemic.

However, after President Muizzu came to power in 2023, the ‘India Out’ campaign soured the relationship. Muizzu called India’s military presence as a ‘threat’ to Maldives’s sovereignty and tried to get closer to China. But India’s economic and strategic assistance and its rising global influence made the Maldives understand the importance of India. The visit of Maldives’ foreign and defense ministers to India in 2024 and India’s $400 million currency swap facility improved the relationship.

Agreements made during Maldives visit and benefits to India

Economic aid and debt relief

• India extended a Line of Credit (LoC) of Rs 4,850 crore to Maldives that will help in infrastructure, housing and community development projects.
• Maldives’ annual debt repayment obligations were reduced, providing relief to their economy.
• Currency swap facility of $400 million (Rs 3,320 crore) and treasury bills of $50 million (Rs 415 crore) were extended.
• Grant assistance promised of $69 million (Rs 572.7 crore).
• Benefit: India will emerge as the most reliable economic partner of Maldives. It will increase India’s influence in the Indian Ocean and balance China’s influence.

Free Trade Agreement (IMFTA)

• Negotiations on the India-Maldives Free Trade Agreement (IMFTA) began. It will boost trade in sectors such as fisheries, aquaculture, and tourism.
• Benefit: Indian fishermen and traders will get a new market in Maldives. Maldives will get Indian products at cheaper rates, which will increase trade between the two countries.

Housing and infrastructure

• Transfer of 3,300 social housing units in Hulhumale. Inauguration of road and drainage system project in Addu town. 6 high impact community development projects initiated, such as water supply and sewerage facilities.
• Benefit: With India’s help, the standard of living in Maldives will improve. This will increase India’s soft power and create a positive image of India in Maldives.

Defence and Security Cooperation

• Inauguration of Defence Ministry building in Male. Transfer of 72 heavy vehicles and two Bhishma Health Cube Sets.
• Grant of $4 million (Rs 33.2 crore) to the Maldives National Defence Force (MNDF).
• Benefit: Increasing the defense capability of Maldives will strengthen maritime security in the Indian Ocean, which is strategically important for India. India-Maldives cooperation at the Colombo Security Summit will enhance regional stability.

Digital and Technological Cooperation

• Introduction of UPI and Rupay payment systems, which will boost tourism and retail trade in Maldives.
• Agreement between the Indian Institute of Tropical Meteorology and the Maldives Meteorological Service.
• Agreement to share digital solutions at population level for digital transformation.
• Benefit: Indian digital companies will get a new market in Maldives. Transactions will become easier for Indian tourists in Maldives, which will increase tourism.

Health and fisheries

• Maldives recognises Indian Pharmacopoeia (IP), making Indian medicines easily available in Maldives.
• Agreement for cooperation in fisheries and aquaculture.
• Benefit: Indian pharma companies will get market in Maldives. Fishermen will get increased business opportunities in Maldives.

Cultural and diplomatic reinforcement

• Joint postage stamp released on the 60th anniversary of India-Maldives diplomatic relations.
• PM Modi and President Muizzu planted saplings under the ‘One Tree in the Name of Mother’ campaign.
• Benefit: Cultural and people-to-people ties will be strengthened. India’s image in the Maldives as a trusted friend will be further strengthened.

Improving relations with Maldives

• In the last two years, the ‘India Out’ campaign in Maldives had created an atmosphere against India. President Muizzu initially distanced himself from India and showed inclination towards China. But India’s economic and strategic help made Maldives understand the importance of India.
• Financial assistance in 2024: $400 million currency swap facility and water supply and sewerage projects on 28 islands.
• Additional support in 2025: $69 million in grant assistance and $50 million in Treasury bills.
• High-level visits: Visits by Maldives Foreign Minister Abdullah Khaleel and Defence Minister Ghassan Maumoon to India gave a new dimension to the relationship.

President Muizzu said during PM Modi’s visit, “India is our closest and most valued partner. IMFTA will further strengthen our economic partnership.” This shows that Maldives is now prioritizing cooperation with India.

Strategic and economic importance to India

• Influence in the Indian Ocean: Maldives is on an important shipping route in the Indian Ocean. With India’s help, Maldives’ defence and economic position will be strengthened, India’s regional influence will increase.
• Balancing China’s influence: China’s growing influence in Maldives was a challenge. India’s economic and defence assistance brought Maldives closer to India.
• Tourism and trade: Digital payment systems like UPI and Rupay will make it easier for Indian tourists to travel to Maldives. This will increase tourism and trade.
• Soft Power: India’s assistance in housing, health, and infrastructure strengthened India’s image in the Maldives as a trusted friend.

Shared benefits for both countries

England

• The UK will gain access to a huge market like India . Their whisky, cars, and medical equipment will be cheaper in India, and the share of their companies will increase.
• Tariff cuts in India on 90% of British products will deliver £6 billion in investment and export benefits to the UK.
• Thousands of jobs in the UK would be protected, particularly in the whisky, automobile and financial services sectors.

• Maldives
• India’s economic help will strengthen Maldives’ economy. Loan assistance of Rs 4,850 crore and relief in loan repayment will improve Maldives’ financial situation. Housing, roads and defence projects will improve the lives of the people of Maldives.
• Agreements like UPI and IMFTA will boost tourism and trade of Maldives.

India

• Increasing trade and investment with both the countries will strengthen India’s economy.
• India’s strategic influence in the Indian Ocean will increase, and ‘Make in India’ will get new impetus.
• Farmers, artisans, youth and MSMEs will get new opportunities, which will increase the social and economic prosperity of India.

PM Narendra Modi’s visit to England and Maldives has further strengthened India on the global stage. The CETA agreement with the UK has opened new doors for trade, employment and education for India. The agreements with the Maldives have strengthened India’s soft power and strategic position in the Indian Ocean. Both these visits are massive steps toward regional stability and prosperity under India’s ‘Neighbour First’ and ‘SAGAR’ policy.

These are not just trade and strategic agreements, but a new story of India’s progress. Farmers will get new markets, youth will get jobs and MSMEs will get global recognition. PM Modi’s leadership and his visionary policies are rapidly taking India on the path of becoming a global economic power.