India-UK Free Trade Agreement comes into force, opening a new era of trade, investment and economic cooperation
By R Anil Kumar
New Delhi/ Bengaluru, July 15, 2026. India and the United Kingdom have ushered in a new phase of economic cooperation with the Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security Contributions, also known as the Double Contribution Convention (DCC), coming into force on July 15. The twin agreements mark a major milestone in India’s global economic engagement and are expected to significantly boost bilateral trade, investment, services exports and professional mobility while strengthening the strategic partnership between the two countries.
The implementation of the agreements follows the successful completion of all internal procedures and ratifications by both governments. Aligned with India’s vision of Viksit Bharat 2047, the agreements operationalise a comprehensive economic framework designed to translate policy commitments into day-to-day commercial engagement with one of India’s key global partners.
CETA provides zero-duty access for nearly 99 per cent of India’s exports to the United Kingdom, covering almost 100 per cent of the country’s trade value with Britain. Simultaneously, the Agreement on Social Security Contributions has come into effect, increasing the exemption period for Indian professionals from double social security contributions from three years to five years, a move expected to significantly benefit Indian workers on temporary assignments in the UK.
The journey towards this landmark agreement began in May 2021 with the launch of the India-UK Enhanced Trade Partnership and the adoption of the India-UK Roadmap 2030. The roadmap envisioned elevating bilateral ties into a Comprehensive Strategic Partnership while setting an ambitious target of doubling bilateral trade to USD 100 billion by 2030.
Following fourteen rounds of intensive negotiations, CETA was concluded on May 6, 2025. The agreement was formally signed on July 24, 2025, in London by India’s Union Minister of Commerce and Industry, Piyush Goyal, and the United Kingdom’s Secretary of State for Business and Trade, Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and British Prime Minister Sir Keir Starmer. To complete the overall framework, the companion Double Contribution Convention was signed on February 10, 2026.
Describing the agreement as a landmark achievement in India’s economic diplomacy, Union Commerce and Industry Minister Piyush Goyal said the simultaneous implementation of CETA and the Double Contribution Convention would create significant new opportunities for Indian exports.
He said that by securing immediate duty-free access on 99 per cent of India’s tariff lines, the agreement removes long-standing tariff barriers and enables sectors such as textiles, leather, marine products, engineering goods and processed foods to compete in the UK market without any tariff disadvantage.
The minister also emphasised that while the agreement aggressively expands India’s commercial footprint, it simultaneously protects domestic interests. He noted that stringent exclusion lists have been incorporated to shield sensitive agricultural and rural sectors from import volatility, while the exemption from double social security contributions safeguards the financial interests of Indian professionals working temporarily in the United Kingdom.
Comprising 30 chapters, the Comprehensive Economic and Trade Agreement establishes a next-generation trade architecture that extends far beyond conventional tariff reductions. It modernises bilateral economic engagement by integrating traditional trade in goods and services with emerging areas such as digital trade, telecommunications, financial services, intellectual property and, for the first time in a bilateral agreement, government procurement. The agreement also includes dedicated chapters on innovation, small and medium enterprises, sustainability and transparency, creating a modern, rules-based framework aimed at strengthening supply chains, promoting technological collaboration and supporting India’s long-term economic diplomacy.
The operationalisation of CETA and the Double Contribution Convention is expected to bring about a structural transformation in India’s trade architecture by leveraging the country’s manufacturing strength, service capabilities and grassroots production network to gain deeper access to one of the world’s leading consumer markets.
A major benefit of the agreement is the complete elimination of UK import tariffs across a wide range of Indian export sectors. Tariffs of up to 70 per cent on processed food products, up to 21.5 per cent on marine products, up to 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear products, up to 12 per cent on textiles and clothing, and up to 8 per cent on chemicals and pharmaceutical products will now be reduced to zero.
The government expects this immediate duty-free market access to significantly improve the competitiveness of Indian exports, generate fresh opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India’s integration into global value chains. The agreement also enables traditional artisans, manufacturing enterprises and industrial clusters across the country to compete on equal terms in the British market from the very first day of implementation.
At the same time, India has protected several sensitive sectors from tariff liberalisation, including dairy products, cereals, millets, edible oils, oilseeds, apples and a range of vegetable products, thereby safeguarding domestic agricultural interests.
The services sector also stands to gain substantially under the agreement. The United Kingdom has offered one of its most comprehensive services commitments ever, covering all major services sectors and 137 sub-sectors of export interest to India.
Indian service providers engaged in information technology and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services are expected to benefit from improved market access and greater regulatory certainty.
The agreement further provides predictable mobility pathways for business visitors, intra-corporate transferees, contractual service suppliers, independent professionals and investors, making cross-border movement more structured and transparent.
In a first-of-its-kind arrangement, the agreement also creates dedicated annual mobility opportunities for 1,800 Indian chefs, yoga instructors and classical musicians, opening new avenues for skilled Indian professionals in the UK.
The Agreement on Social Security Contributions represents another major breakthrough in bilateral cooperation. The agreement exempts Indian workers and their employers from making dual social security contributions in the United Kingdom during temporary assignments. More significantly, the exemption period has been extended from three years to five years.
The government estimates that the agreement will benefit more than 75,000 Indian professionals and over 900 companies by supporting workforce mobility while ensuring continuity of social security benefits. It is also expected to strengthen India-UK collaboration in the services sector by leveraging the high-skilled workforce and innovative service capabilities of both countries.
The agreements also address concerns relating to steel exports. Demonstrating close cooperation under the India-UK Comprehensive Economic Partnership, both governments have reached a consensus to safeguard bilateral steel trade following the UK’s steel measures that came into effect on July 1, 2026.
According to the government, 85 per cent of India’s steel exports remain outside the scope of the UK steel measures. For the remaining product lines covered by the measures, India’s interests have been protected through a combination of country-specific quotas, residual quotas and access under the Authorised Use Scheme. The arrangement is intended to minimise market disruptions while maintaining a balanced and stable trading environment for exporters.
The government has described CETA as a people-centric trade agreement designed to deliver benefits across all sections of society. Farmers are expected to gain access to premium export markets, fisherfolk will benefit from increased seafood exports, workers will find new employment opportunities in labour-intensive industries, while women entrepreneurs, youth, startups and MSMEs are expected to secure greater participation in global value chains. Professionals, meanwhile, will benefit from enhanced mobility and wider recognition of their services.
With the implementation of the Comprehensive Economic and Trade Agreement and the Double Contribution Convention, India and the United Kingdom have established a comprehensive economic architecture that deepens their strategic partnership while creating new opportunities in trade, investment, innovation and services. According to the government, the agreements strengthen India’s journey towards becoming a globally integrated, resilient and competitive economy, while reinforcing the country’s long-term vision of building an inclusive, prosperous and self-reliant Viksit Bharat 2047.
The new framework is expected to help both countries navigate the changing landscape of global commerce while laying the foundation for sustained economic growth, expanded bilateral cooperation and shared prosperity in the years ahead.
PM Narendra Modi hails India-UK FTA as ‘significant moment’ in bilateral partnership as landmark trade pact comes into force
Prime Minister Narendra Modi on Wednesday, July 15, described the coming into force of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security as a “significant moment” in bilateral relations, saying the twin agreements would deepen economic ties and create new opportunities for businesses, farmers, professionals and skilled workers in both countries.
The landmark agreements, which came into force on July 15, mark a new phase in India-UK economic cooperation and are expected to boost bilateral trade, investment, services exports and professional mobility while strengthening the Comprehensive Strategic Partnership between the two countries.
In a post on X, PM Modi said, “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 Prime Minister said.
He said the CETA would provide fresh momentum to India’s farmers, entrepreneurs and micro, small and medium enterprises (MSMEs), while enabling several vibrant sectors to gain stronger access to the UK market. The agreement would also deepen cooperation in technology, professional services and innovation, besides supporting greater mobility for skilled Indian professionals.
Referring to the Agreement on Social Security, PM Modi said it would provide invaluable support to Indian professionals working temporarily in the United Kingdom while enhancing the competitiveness of Indian enterprises.
“This moment reflects the trust between our democracies and our resolve to build a forward-looking partnership driven by trade, technology, investment and innovation. India and the UK will continue working together for shared prosperity,” he added.
Earlier, Union Commerce and Industry Minister Piyush Goyal termed the implementation of the agreements a defining milestone in India-UK relations, highlighting the significant trade and economic benefits expected to accrue from the pact.
In a post on X, Goyal said, “Today marks a defining milestone in India-UK ties. Under the dynamic leadership of Hon’ble PM Narendra Modi 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.”
The Commerce Minister said the free trade agreement would create unprecedented opportunities for India’s textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed food sectors, while benefiting MSMEs, farmers and manufacturers.
He added that the agreement also opens new opportunities for India’s information technology, professional, financial, education and business services sectors while expanding mobility for Indian talent.
Highlighting the importance of the social security agreement, Goyal said it exempts Indian professionals on temporary assignments in the UK from making double social security contributions for up to five years, thereby improving the global competitiveness of India’s skilled workforce.
He thanked his British counterpart Peter Kyle and the negotiating teams of both countries for successfully concluding the transformational agreement.
Goyal said the agreement would open new avenues for trade, investment and innovation while accelerating PM Modi’s vision of Viksit Bharat 2047.
“The agreement, which opens new avenues for trade, investment and innovation, will create unique opportunities for our businesses while further accelerating PM Narendra Modi ji’s vision of Viksit Bharat 2047. Reflecting the capabilities and aspirations of the people of India, this ambitious agreement will empower every section of society. Women, farmers, youth, MSMEs, innovators, professionals and fisherfolk all stand to gain from the opportunities it creates,” he said.
Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal also welcomed the implementation of the agreement, describing it as “a defining moment” in India-UK relations.
In a post on X, Jaiswal said the agreement secures zero-duty market access for nearly 99 per cent of India’s exports, covering almost the entire trade value, and unlocks unprecedented opportunities for farmers, MSMEs and manufacturers.
He said the agreement would provide a significant boost to sectors including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods.
Jaiswal also noted that the Agreement on Social Security exempts Indian professionals on temporary assignments in the UK from double social security contributions for up to five years, benefiting India’s skilled workforce.
The India-UK Comprehensive Economic and Trade Agreement is a landmark free trade pact aimed at deepening economic ties by expanding market access, promoting investment and strengthening cooperation across goods, services, technology and innovation.
The foundation for the agreement was laid through the India-UK Enhanced Trade Partnership and the Roadmap 2030 launched in May 2021, which set the objective of doubling bilateral trade to USD 100 billion by 2030. Following 14 rounds of negotiations, the agreement was concluded on May 6, 2025, and formally signed in London on July 24, 2025, by Union Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds in the presence of Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer.
Comprising 30 chapters, CETA covers trade in goods and services, digital trade, telecommunications, financial services, intellectual property, government procurement, innovation, MSMEs, sustainability and transparency. The agreement provides duty-free market access for nearly 99 per cent of India’s exports to the UK by tariff lines, covering almost the entire trade value, while safeguarding sensitive sectors such as dairy, cereals, edible oils and certain agricultural products.
The accompanying Double Contribution Convention exempts Indian professionals on temporary assignments in the United Kingdom from dual social security contributions for up to five years, significantly enhancing the mobility and global competitiveness of India’s skilled workforce.
