The long-awaited India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) officially came into force on Wednesday, marking a historic milestone in bilateral economic ties between the two nations. Alongside the trade pact, the Agreement on Social Security, also known as the Double Contribution Convention (DCC), also became operational, providing significant relief to Indian professionals and businesses by exempting eligible temporary workers from paying social security contributions in the UK for a specified period.
The twin agreements are expected to boost trade, investment, employment and professional mobility while strengthening the strategic partnership between India and the UK.
Briefing the media in New Delhi, Commerce Secretary Rajesh Agrawal described the India-UK CETA as a defining milestone in India's trade journey, saying it establishes a future-oriented economic partnership between two of the world's major economies. He said the agreement ushers in a new phase in bilateral trade and investment relations by reducing both tariff and non-tariff barriers across a wide range of sectors.
One of the biggest highlights of the agreement is that 99 per cent of Indian exports by tariff lines will now enjoy zero-duty access to the UK market. The move is expected to significantly enhance the competitiveness of Indian products and create fresh opportunities for exporters across several industries.
The agreement eliminates UK tariffs on numerous labour-intensive and manufacturing sectors. Duties of up to 70 per cent on processed food products, over 21 per cent on marine products, around 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear, and around 12 per cent on textiles and clothing have been reduced to zero.
The tariff elimination is expected to provide a major boost to Indian farmers, fishermen, micro, small and medium enterprises (MSMEs), manufacturers and exporters, while helping integrate Indian businesses more deeply into global value chains.
The simultaneous implementation of the Double Contribution Convention (DCC) is expected to benefit thousands of Indian professionals working in the UK on temporary assignments.
Under the arrangement, eligible Indian employees and their employers will be exempt from making social security contributions in the United Kingdom for the prescribed period, thereby reducing employment costs and improving the competitiveness of Indian service providers operating overseas.
Officials said the agreement will facilitate greater mobility of skilled professionals while making Indian companies more competitive in the British market.
According to the Commerce Ministry, the India-UK CETA is among India's most comprehensive free trade agreements, covering a broad spectrum of goods and services while addressing both tariff and non-tariff barriers.
The pact reflects the shared commitment of New Delhi and London to deepen economic cooperation, strengthen supply chains, expand investment flows and generate employment opportunities in both countries.
The agreement has also been designed as a people-centric trade pact, with benefits expected to reach businesses, workers, exporters and consumers alike.
While opening up significant market access, India has ensured protection for its sensitive agricultural sectors during negotiations.
The agreement safeguards key domestic products, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products, ensuring that vulnerable sectors remain insulated from import pressures.
Officials said the balanced approach allows India to maximise export gains while protecting the interests of farmers and domestic producers.
With the implementation of both the India-UK Comprehensive Economic and Trade Agreement and the Double Contribution Convention, India has taken another major step towards becoming a more globally integrated, resilient and competitive economy, while strengthening one of its most important strategic and economic partnerships.
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