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India-UK free trade agreement gets cabinet nod, signing scheduled during PM Modi’s London visit

India and the UK will sign a landmark free trade agreement during PM Modi’s London visit, aiming to eliminate tariffs on key goods and boost bilateral trade to USD 120 billion by 2030.

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In a major development on the economic diplomacy front, the Indian cabinet has approved the long-negotiated free trade agreement (FTA) with the United Kingdom. The agreement, officially known as the Comprehensive Economic and Trade Agreement (CETA), is set to be signed during Prime Minister Narendra Modi’s visit to London on July 24.

The prime minister’s four-day visit will begin on Wednesday and includes stops in both the United Kingdom and the Maldives. Accompanying him on this diplomatic mission will be Commerce and Industry Minister Piyush Goyal, who will co-sign the agreement with his British counterpart.

Key highlights of the India-UK trade pact

The CETA aims to remove tariffs on key Indian exports such as leather goods, footwear, and garments—sectors known for being labour-intensive. In return, the pact will lower import duties on British products like whisky and automobiles. This mutual tariff relaxation is expected to significantly boost bilateral trade, with the target of doubling trade volumes to USD 120 billion by 2030.

In addition to trade in goods, the agreement encompasses various other sectors, including services, innovation, intellectual property rights, and government procurement.

Negotiations for the FTA officially concluded on May 6, and while the pact will be signed shortly, it will only come into effect after ratification by the British Parliament. The text of the agreement is usually signed by the respective commerce ministers of the two nations.

Social security pact also concluded

Alongside the trade agreement, India and the UK have also wrapped up discussions on a separate Double Contribution Convention Agreement. This social security pact is expected to benefit Indian professionals working in the UK for short durations by avoiding double contributions to social security schemes.

Bilateral investment treaty still under negotiation

While the FTA and social security agreement are in place, discussions around the bilateral investment treaty (BIT) continue. The BIT is expected to focus on protecting investments and ensuring dispute resolution mechanisms for investors from both countries.

Trade figures and projections

India’s exports to the UK grew by 12.6% to USD 14.5 billion in 2024–25, while imports rose marginally by 2.3% to USD 8.6 billion. Overall bilateral trade increased to USD 21.34 billion in 2023–24, up from USD 20.36 billion the previous year.

Once ratified by both governments, the free trade agreement will pave the way for stronger economic ties between India and the UK, fostering more robust commercial exchanges and investment opportunities.

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India clears Rs 3.25 lakh crore proposal to procure 114 Rafale fighter jets

India has cleared a Rs 3.25 lakh crore proposal to acquire 114 Rafale fighter jets for the Indian Air Force, marking the country’s biggest defence procurement.

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Rafale M deal

India has approved a proposal worth Rs 3.25 lakh crore to procure 114 Rafale fighter jets for the Indian Air Force, marking the largest defence acquisition programme in the country’s history.

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for the Multi Role Fighter Aircraft programme. The clearance comes ahead of French President Emmanuel Macron’s upcoming official visit to New Delhi.

Under the proposal, 18 Rafale aircraft will be purchased off-the-shelf from French defence manufacturer Dassault Aviation, while the remaining 96 jets will be manufactured in India.

Make in India focus and technology transfer

The programme will be structured as a strategic partnership aimed at strengthening the government’s Make in India initiative. The deal is expected to include transfer of advanced fighter jet technology as part of domestic manufacturing.

Following the DAC’s approval, the acquisition will require final clearance from the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi.

Wider approvals worth Rs 3.60 lakh crore

Alongside the Rafale programme, the DAC accorded AoN for multiple capital acquisition proposals of the armed forces at an estimated total value of about Rs 3.60 lakh crore.

For the Indian Air Force, approvals were also granted for combat missiles and an Air-Ship Based High Altitude Pseudo Satellite platform. The MRFA procurement is intended to enhance air dominance capability across the full spectrum of conflict and strengthen long-range offensive strike capacity.

The combat missiles are designed to improve stand-off ground attack capability with high accuracy. The AS-HAPS platform will support persistent intelligence, surveillance and reconnaissance operations, electronic intelligence, telecommunications and remote sensing for military use.

Army, Navy and Coast Guard procurements

For the Army, AoN was granted for the procurement of Vibhav anti-tank mines and for the overhaul of Armoured Recovery Vehicles, T-72 tanks and BMP-II Infantry Combat Vehicles. The upgrades are expected to extend the operational life of these platforms.

The Navy received clearance for a 04 MW Marine Gas Turbine-based Electric Power Generator under the Make-I category of the Defence Acquisition Procedure 2020, as well as additional P-8I Long Range Maritime Reconnaissance Aircraft. The additional P-8I aircraft are expected to enhance anti-submarine warfare, maritime surveillance and maritime strike capabilities.

The Indian Coast Guard was granted approval for the procurement of Electro-Optical and Infra-Red systems for its Dornier aircraft.

Existing Rafale fleet and naval variant

The Indian Air Force currently operates 36 Rafale aircraft across two squadrons. The last delivery of the C variant took place in December 2024.

Separately, India has ordered 26 Rafale M variant aircraft for the Navy in a deal valued at Rs 63,000 crore. These aircraft will operate from INS Vikrant and INS Vikramaditya and include provisions for maintenance, logistics support and training under a Maintenance, Repair and Overhaul arrangement.

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Hardeep Puri hits back at Rahul Gandhi over Epstein files allegations

Hardeep Singh Puri has rejected Rahul Gandhi’s claim that references in US Department of Justice records linked to Jeffrey Epstein compromised India’s trade deal with the United States.

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Hardeep singh puri

Union Minister Hardeep Singh Puri on Thursday strongly criticised Congress MP Rahul Gandhi over allegations linked to references to his name in recently released US Department of Justice documents connected to Jeffrey Epstein.

Responding to Gandhi’s claims that the mentions had compromised India’s trade agreement with the United States, Puri dismissed the charge and said he had done nothing improper.

Speaking to media, Puri said he had met Epstein on two occasions but clarified that the meetings were arranged for official purposes and were not initiated by him.

“I didn’t seek meetings… they were set up for me,” he said, adding that two meetings did not amount to guilt by association. He emphasised that he was not part of the government at the time and said he “comes out smelling of roses” from the episode.

Row over trade agreement

The minister rejected the suggestion that references in the so-called Epstein files had placed pressure on Prime Minister Narendra Modi in negotiating a trade and tariff agreement with the United States.

Puri said that if Rahul Gandhi read the text of the India-US agreement carefully, he would understand that it is part of an interim framework that had been in the works. He stressed that for a country like India, with nearly 50 per cent of its GDP linked to the external sector, trade agreements are vital.

Taking a sharp dig at the Congress leader, Puri said Gandhi was “making a mountain out of a molehill” and accused him of not properly reading the agreement before commenting on it.

Gandhi’s allegation

On Wednesday, after speaking in the Lok Sabha and accusing Prime Minister Modi of “selling out Bharat Mata,” Rahul Gandhi claimed he had verified information that Hardeep Puri and businessman Anil Ambani were named in US Department of Justice records relating to Epstein.

Gandhi argued that the presence of Puri’s name in the files had created direct pressure on the Prime Minister, forcing him into what he described as a disadvantageous agreement for India in matters concerning farmers, data, energy security and defence.

He said no Prime Minister would compromise on such issues without facing “heavy pressure and a very strong chokehold.”

Puri responded by stating he had only met Epstein a handful of times and never in private. He said he had no interest in Epstein’s activities and added that Epstein had described him as “two-faced.”

Government response to Israel reference

Meanwhile, on January 31, Ministry of External Affairs spokesperson Randhir Jaiswal addressed reports of an email said to be part of the recently released tranche of documents that referenced Prime Minister Modi’s 2017 visit to Israel.

Jaiswal said that apart from the fact of the Prime Minister’s official visit to Israel in July 2017, the rest of the email’s references were “trashy ruminations” of a convicted criminal and deserved to be dismissed with contempt.

Fresh disclosures from US

Last month, the US Department of Justice released a new tranche of records from its files related to Epstein. The disclosure includes more than three million pages of documents, over 2,000 videos and 180,000 images.

The release follows the enactment of the Epstein Files Transparency Act, which mandates the opening of government files relating to Epstein and his longtime associate Ghislaine Maxwell.

Jeffrey Epstein died in a New York jail cell in August 2019, a month after he was indicted on federal sex trafficking charges. His death was ruled a suicide.

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Rahul Gandhi says India must speak to Trump as equal on trade deal

Rahul Gandhi says India should negotiate with US President Donald Trump as an equal, highlighting concerns over data access, energy security and farmers amid revisions to the trade factsheet.

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Congress leader and Leader of Opposition in the Lok Sabha Rahul Gandhi on Tuesday set out what he said would have been the INDIA alliance’s approach in negotiating with US President Donald Trump on the latest trade agreement.

Speaking during the Budget session in Parliament, Gandhi said the Opposition bloc would have insisted on engaging with the United States “as equals” while safeguarding India’s strategic and economic interests.

He referred to earlier remarks by senior Congress leader Shashi Tharoor, who had described the agreement as appearing less like a free trade pact and more like a pre-committed purchase arrangement that weakens reciprocity.

Three key points outlined

Gandhi said that if the INDIA alliance were negotiating with President Trump, it would begin by acknowledging the importance of the US dollar and expressing willingness to support economic stability. However, he stressed that India’s data and market access are significant assets and any such engagement must be based on equality.

“If you want access to this data, then please understand that you are going to talk to us as an equal,” Gandhi said, adding that India should not be treated as subordinate in trade discussions.

His second point focused on energy security. Without naming specific measures, Gandhi indicated that India would protect its energy interests regardless of external pressure, an apparent reference to US calls for India to halt oil purchases from Russia.

Third, he said that while the US administration may need to safeguard its agricultural voter base, India would also protect its farmers. He added that India should not accept being equated with Pakistan in trade matters.

Changes in US factsheet

The remarks came amid political debate over an interim trade understanding between India and the United States.

The White House revised an earlier factsheet on the agreement. In the updated version, the reference to “pulses” was removed from the list of American products on which India would eliminate or reduce tariffs.

Additionally, the language describing India’s purchases of American goods was changed. The initial document had stated that India “committed” to buying more US products and purchasing over $500 billion worth of US energy, information and communication technology, agricultural goods, coal, and other items. The revised version replaced “committed” with “intends”.

Gandhi criticised the Centre in the Lok Sabha a day after the Congress alleged that India had weakened its own trade leverage.

The current phase of the Budget session is scheduled to conclude on April 2. Parliament will adjourn for recess on February 13 and reconvene on March 9 for further discussions, including examination of demands for grants by standing committees.

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