Historic India-UK Trade Pact Begins; Nearly All Indian Exports Exempt from Duties

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The Comprehensive Economic and Trade Agreement (CETA) between India and the UK came into effect on July 15. Alongside this, the Agreement on Social Security—also known as the Double Contribution Convention (DCC)—has also been implemented, bolstering the mobility and competitiveness of Indian professionals in the United Kingdom.

This historic deal grants Indian exports zero-duty access to 99 percent of tariff lines in the UK market. It reflects the shared commitment of India and the United Kingdom to deepen their strategic partnership and bring prosperity to their people. Briefing the media in New Delhi, Commerce Secretary Rajesh Agrawal described the India-UK CETA as a significant milestone in India’s trade journey, noting that it establishes a future-oriented economic partnership between two major economies. Speaking to the media on Tuesday, he stated that this agreement would usher in a new era in bilateral trade and investment relations between India and the UK.

The Commerce Secretary highlighted that this agreement is one of India’s largest trade pacts, offering extensive sectoral coverage while reducing both tariff and non-tariff barriers. Emphasizing the Double Contribution Convention (DCC), he noted that the arrangement would benefit Indian professionals and their employers by exempting eligible workers on temporary assignments in the UK from making social security contributions there for a specified period. Reports indicate that the implementation of the India-UK CETA and DCC marks a major step forward in India’s journey toward becoming a globally integrated, resilient, and competitive economy.

The agreement has been designed as a people-centric pact that delivers benefits across society. The simultaneous implementation of CETA and DCC will open up significant new opportunities for India’s exports. Indian exporters will benefit from the complete elimination of UK tariffs across several key sectors. Tariffs will be reduced to zero on processed food products (up to 70%), marine products (over 21%), engineering goods and auto components (approximately 18%), leather and footwear products (up to 16%), and textiles and clothing (approximately 12%).

This will substantially boost the competitiveness of Indian exports in the UK market, create new opportunities for farmers, fishers, MSMEs, and manufacturers, and strengthen India’s integration into global value chains. Under the agreement, India has safeguarded its sensitive sectors, including dairy products, cereals, millets, edible oils, oilseeds, apples, and various vegetable products.

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