India and the UK on Wednesday announced that the Comprehensive Economic and Trade Agreement (CETA) would come into force on July 15, ushering in a new phase in bilateral economic ties.
Simultaneously, the Social Security Agreement, also referred to as the Double Contribution Convention (DCC), will also come into effect on July 15, reinforcing the mobility and competitiveness of Indian professionals in the UK.
The period of exemption under the DCC has also been increased from three years to five years, marking a major gain for Indian professionals on temporary overseas assignments.
Prime Minister Narendra Modi, in a post on X, said: “A historic milestone for India-UK relations. Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will come into force on July 15. This agreement will significantly boost our bilateral trade and investment.”
“It will also unlock numerous opportunities for Indian farmers, workers, MSMEs, startups and innovators, and contribute meaningfully to the realisation of Viksit Bharat 2047. Both PM Starmer and I, who are in Evian for the G7 Summit, are naturally very happy with the significant momentum being added to our economic ties,” he added.
With the agreement coming into force, Indian exporters will benefit from the complete elimination of UK tariffs across several key sectors. Tariffs of up to 70 per cent on processed food products, up to 21.5 per cent on marine products, up to 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear products, up to 12 per cent on textiles and clothing, and up to 8 per cent on chemicals and pharmaceutical products will be reduced to zero.
The immediate duty-free access secured under CETA is expected to significantly enhance the competitiveness of Indian exports in the UK market, generate new opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India’s integration into global value chains.
This duty-free access is expected to provide a major boost to Indian manufacturing, enabling traditional artisans, large-scale factories and regional industrial hubs to compete more effectively in the UK market from day one of implementation.
At the same time, India has protected sensitive sectors, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products.
The UK has provided one of its most comprehensive services commitments ever, covering all major services sectors and 137 sub-sectors of export interest to India.
Indian service providers in IT and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services are expected to benefit from enhanced market access and greater regulatory certainty.
Meanwhile, the Social Security Agreement exempts Indian workers and employers from making dual social security contributions in the UK during temporary assignments. The exemption period has been extended from three years to five years.
More than 75,000 Indian professionals and over 900 companies are expected to benefit from the arrangement. The agreement will support mobility and ensure continued social security coverage for employees on temporary overseas assignments, further strengthening India-UK cooperation in the services sector.
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Remembering Sardar Dyal Singh Majithia
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