India-UK Free Trade Pact and Social Security Agreement Come Into Force

India and the United Kingdom have officially put into effect their Comprehensive Economic and Trade Agreement (CETA) and a parallel social security agreement, marking a significant step in strengthening bilateral ties. Prime Minister Narendra Modi described the operationalization as a reflection of the "trust" between the two democracies and their shared "resolve to build a forward-looking partnership."

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This is a significant moment in the India-United Kingdom partnership! With the coming into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic linkages are going to get even deeper. Together, these agreements translate our shared ambition into tangible opportunities for our people.

The CETA is expected to provide fresh momentum for Indian farmers, entrepreneurs, and small and medium-sized enterprises (MSMEs) by granting them stronger access to the UK market. The agreement covers nearly 99% of India's exports, including goods from labor-intensive sectors like textiles, leather, footwear, engineering, pharmaceuticals, and gems and jewelry, offering duty-free market access. It also aims to deepen cooperation in technology, professional services, and innovation, while facilitating greater mobility for skilled Indian talent.

Complementing the trade pact, the Agreement on Social Security, also known as the Double Contribution Convention (DCC), will exempt professionals on temporary assignments from mandatory social security contributions in the host country on a reciprocal basis. This is anticipated to provide "invaluable support" to Indian professionals working in the UK and enhance the competitiveness of Indian enterprises.

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This social security agreement would provide invaluable support to Indian professionals working temporarily in the UK while strengthening the competitiveness of Indian enterprises.

Commerce and industry minister Piyush Goyal called the operationalization a "defining milestone" in India-UK relations. The agreements come as India and the European Union are nearing the finalization of their own major trade deal. Exporters have welcomed the pacts, anticipating a boost to bilateral services trade and overall economic linkages between the two nations, fostering shared prosperity.

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Under the dynamic leadership of Hon’ble PM @NarendraModi ji, the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security, have come into force, delivering zero-duty market access for nearly 99% of India’s exports, covering almost 100% of trade value.