The India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security officially came into force on Wednesday, after nearly three years of negotiations. The agreement is aimed at boosting trade, investment, services, and economic cooperation between the two countries.
Union Commerce and Industry Minister Piyush Goyal announced the implementation of the agreement through a post on X, calling it a "historic milestone" and saying that it would create "unprecedented opportunities" for Indian businesses, exporters, professionals, and workers.
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According to Goyal's statement, the Free Trade Agreement (FTA) is expected to benefit exporters, farmers, micro, small and medium enterprises (MSMEs), start-ups and workers by expanding market access in the United Kingdom. It also opens new frontiers for our IT, financial, education and business services sectors, while expanding mobility for Indian talent.
Goyal stated that the trade pact provides immediate duty-free access for 99% of India's tariff lines in the UK, covering nearly all Indian exports.
Goyal credited Prime Minister Narendra Modi's leadership for helping conclude the negotiations and said the pact would further strengthen Indian-UK commercial ties.
The ministry said that the FTA also aims to reduce non-tariff barriers, simplify regulatory procedures and improve opportunities for Indian service providers in the UK. According to the Government of India, the Double Contribution Convention (DCC), which takes effect alongside the FTA, exempts eligible Indian professionals temporarily working in the UK and their employers from making social security contributions in both countries for a specified period.
The tariff elimination is expected to benefit labour-intensive sectors including textiles, garments, leather products, footwear, gems and jewellery, marine products, engineering goods, auto components, chemicals, processed food, and agricultural products.
Indian consumers are expected to benefit from phased tariff reductions on several UK products, including premium cars, scotch whiskey, certain food products, and other manufactured goods. These reductions are expected to make some imported British products more affordable over time, while sensitive sectors remain protected through quotas and phased implementation.
The UK government previously estimated that the deal could add around £25.5 billion to bilateral trade over time while supporting economic growth in both countries, Reuters reported.
The agreement was signed in 2025. Following legal procedures and implementation preparations, it officially entered into force on July 15, 2026.
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