India-UK CETA takes effect
Prime Minister Narendra Modi has welcomed the implementation of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) along with the India-UK Social Security Agreement, describing the development as a major milestone in the growing partnership between the two nations.
Calling it a significant step forward, the Prime Minister said the agreements would transform the shared vision of India and the UK into real economic opportunities for businesses, professionals, farmers, and entrepreneurs. He noted that the strengthened partnership would deepen trade, investment, technology collaboration, and innovation while creating long-term benefits for both countries.
In a message shared on social media, PM Modi highlighted that the trade agreement would provide a fresh boost to India’s farmers, micro, small and medium enterprises (MSMEs), and exporters. He said the pact would improve access to the UK market for several Indian industries and encourage greater cooperation in areas such as technology, professional services, and innovation. The agreement is also expected to support the mobility of skilled Indian professionals seeking temporary work opportunities in the UK.
The Prime Minister further emphasized the importance of the Social Security Agreement, stating that it would provide meaningful relief to Indian professionals working in the UK on temporary assignments. By reducing the burden of dual social security contributions, the agreement is expected to improve the competitiveness of Indian businesses operating internationally.
The agreements officially came into force on Wednesday, creating a comprehensive framework for stronger economic cooperation between the two countries. Union Commerce and Industry Minister Piyush Goyal described the occasion as a defining chapter in India-UK relations. He said the trade pact provides zero-duty market access for nearly 99 percent of India’s exports, covering almost the entire value of bilateral trade.
According to the Commerce Ministry, the agreement removes tariffs on a wide range of products, including textiles, garments, leather goods, gems and jewellery, engineering products, chemicals, electronics, marine products, furniture, and sports equipment. These sectors are expected to gain improved competitiveness in the UK market.
India’s agricultural sector is also set to benefit significantly. Most agricultural products will receive duty-free access to the UK, with a few sensitive items such as chicken, pork, eggs, rice, and sugar excluded from the arrangement. In addition, more than 97 percent of tariff lines covering processed food products will enjoy duty-free entry, opening new opportunities in the UK’s large agricultural import market.
Beyond merchandise trade, the agreement expands opportunities for India’s services sector, including information technology, finance, education, consultancy, and other professional services. It also creates greater mobility for skilled Indian workers, enabling businesses to access new markets more efficiently.
A major feature of the Social Security Agreement is the exemption for Indian professionals and their employers from paying UK National Insurance contributions for up to five years during temporary assignments. The provision is expected to benefit more than 75,000 Indian professionals and around 900 companies operating across sectors such as IT, healthcare, finance, telecommunications, education, and consulting.
The agreements also introduce annual mobility quotas for 1,800 Indian professionals, including chefs, yoga instructors, and classical musicians, across numerous service categories, further strengthening cultural and professional exchanges between the two countries.
Minister Goyal thanked UK Secretary of State for Business and Trade Peter Kyle and the negotiating teams from both nations for successfully concluding the agreements. He expressed confidence that the partnership would promote higher trade, increased investment, innovation, and sustainable economic growth while delivering shared prosperity for India and the United Kingdom.
The implementation of CETA and the Social Security Agreement marks a new phase in India-UK economic relations, with both Governments expecting the initiatives to boost bilateral trade, create employment opportunities, and strengthen long-term strategic cooperation.
