India-UK trade pact operational from July 15, PM Modi calls it 'historic milestone'
New Delhi, June 17
India and the United Kingdom on Wednesday announced that the Comprehensive Economic and Trade Agreement will enter into force on July 15, marking a new phase in the country's economic diplomacy.
Simultaneously, the Agreement on Social Security -- referred to as the Double Contribution Convention (DCC) -- will also come into effect on July 15, reinforcing the mobility and competitiveness of Indian professionals in the United Kingdom.
Moreover, the period of exemption under the DCC has been increased from 3 years to 5 years, thereby marking a major gain for India's temporary workers, according to a Commerce Ministry statement.
"A historic milestone for India-UK relations. Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will enter into force on 15th July 2026. This agreement will significantly boost our bilateral trade and investment," Prime Minister Narendra Modi said in a post on X.
"It will also unlock numerous opportunities for Indian farmers, workers, MSMEs, startups and innovators and contribute meaningfully to the realisation of Viksit Bharat 2047. Both PM Starmer and I, who are in Evian for the G7 Summit, are naturally very happy with the significant momentum being added to our economic ties," he added.
The groundwork for this historic agreement was laid in May 2021 through the Enhanced Trade Partnership and the adoption of the India-UK Roadmap 2030, which set the goal of elevating bilateral ties to a Comprehensive Strategic Partnership and doubling trade to $100 billion by 2030.
"The simultaneous enforcement of the CETA and the Double Contribution Convention on 15th July 2026 will open up significant new opportunities for India's exports. By securing immediate duty-free access on 99 per cent of our tariff lines, we have systematically dismantled long-standing tariff walls," Commerce and Industry Minister Piyush Goyal said.
This will effectively level the playing field, allowing our textiles, leather, marine, engineering, and processed food sectors to compete with no disadvantage and supply their world-class products, Goyal added.
Comprising 30 chapters, CETA establishes a new paradigm for next-generation trade pacts, directly supporting India's "Viksit Bharat 2047" vision.
Beyond traditional tariff-cutting, the agreement modernises bilateral engagement by integrating traditional goods and services with advanced disciplines like digital trade, telecommunications, financial services, intellectual property, and - for the first time bilaterally - government procurement.
The operationalisation of the CETA and the simultaneous DCC will mark a structural transformation in India's global trade architecture, said the ministry. At the same time, India has protected sensitive sectors, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products.
— IANS
Reader Comments
Very good news for Indian professionals! Increased exemption period from 3 to 5 years under DCC means our IT workers and engineers won't have to worry about dual social security contributions. This is a smart deal.
As someone who works in trade, I see this as a well-negotiated deal. 99% duty-free access is unprecedented for India. But I hope we've also secured strong provisions for our MSMEs and farmers - they often get left behind in these big pacts.
Good to see dairy and cereals protected! That's our food security. But 30 chapters covering digital trade, telecom, IP - this is a complex deal. Hope our negotiators have thought through all implications for startups and small businesses.
Well done PM Modi and team! This aligns perfectly with Viksit Bharat 2047 vision. But we must also ensure that our farmers and small manufacturers can actually take advantage of these opportunities - need proper infrastructure and training at grassroot level.
As an Indian living in London, this is fantastic! The DCC extension to 5 years will make life so much easier for temporary workers. However, I hope the government has also considered how this will impact the cost of living here - increased trade might push up prices.
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