India–UK CETA comes into force, unlocking new opportunities for trade and services

Describing the development as a defining milestone in India–UK relations, Union Minister of Commerce and Industry Shri Piyush Goyal said the landmark agreements, concluded under the leadership of Prime Minister Shri Narendra Modi, are expected to significantly strengthen trade, investment, and economic cooperation between the two countries. Under the India–UK CETA, nearly 99% of India’s exports will receive zero-duty market access, covering almost the entire value of bilateral trade. The agreement is expected to enhance the competitiveness of Indian products in the UK market while creating fresh opportunities for exporters across a wide range of sectors.  

Key beneficiaries include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, marine products, chemicals, pharmaceuticals, processed foods, agriculture, and manufacturing, with particular gains anticipated for India’s micro, small and medium enterprises (MSMEs). The agreement is also expected to boost exports, strengthen supply chains, attract investment, and generate employment across export-oriented industries.   Beyond merchandise trade, the agreement opens new avenues for India’s globally competitive information technology, professional, financial, education, and business services sectors, while facilitating greater mobility for skilled Indian professionals seeking opportunities in the UK.      The accompanying Agreement on Social Security provides significant relief to Indian professionals and their employers by exempting employees on temporary assignments in the United Kingdom from making double social security contributions for up to five years.

The provision is expected to reduce the cost of overseas assignments, improve workforce mobility, and enhance the global competitiveness of Indian companies and skilled professionals.   Shri Goyal also acknowledged the contribution of UK Secretary of State Peter Kyle and the negotiating teams from both countries for successfully concluding the landmark agreements.      The implementation of the India–UK CETA marks a significant step towards deepening bilateral economic engagement, fostering innovation-led growth, expanding market access, encouraging investments, and building a resilient long-term partnership that delivers shared prosperity for both nations.