- India-UK FTA enables duty-free exports from India to the UK starting July 15
- The agreement includes a Double Contribution Convention for Indian professionals
- Indian workers in the UK can avoid social security contributions for up to five years
Union Commerce and Industry Minister Piyush Goyal on Sunday said the India-UK Free Trade Agreement (FTA) will allow all Indian exports to enter the UK duty-free from July 15, benefiting sectors such as agriculture, fisheries, MSMEs and manufacturing, PTI reported.
Speaking to reporters, Goyal said the agreement goes beyond trade in goods and services by introducing a Double Contribution Convention (DCC), which exempts Indian professionals working in the UK for up to five years from contributing to the country's social security system.
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"The India-UK trade agreement not only covers merchandise, goods and services but also benefits thousands of Indians working in the UK. From July 15, any item exported from India to the UK will attract zero import duty," he said.
The minister also mentioned that the pact would ease the financial burden on Indian professionals employed in Britain through the DCC provision.
"Earlier, nearly 25 per cent of their (Indian professionals') salaries used to go towards the UK government's social security contributions. Now, that amount will be deposited in their provident fund accounts in India, earning 8.25 per cent annual interest. It will remain tax-free and help secure their retirement savings," he said.
According to Goyal, the trade agreement is expected to open up fresh opportunities for Indian professionals while strengthening economic and commercial engagement between India and the UK.
He also credited Prime Minister Narendra Modi's leadership for helping conclude the negotiations.
According to PTI, the Union Commerce and Industry Minister also announced that he would embark on a four-country overseas visit along with a business delegation aimed at expanding India's trade and investment partnerships.
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As part of the tour, Goyal will attend the India-European Union Trade and Technology Council meeting in Brussels on July 14 and 15. The discussions will focus on resolving pending trade issues, enhancing technology cooperation and advancing negotiations on the proposed India-EU Free Trade Agreement.
He said greater technology collaboration with European countries would support India's long-term growth while deepening economic ties with the region.
( From PTI inputs.)
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