India-UK Trade Pact Takes Effect, Boosting Exports and Workforce Mobility

Piyush Goyal hails India-UK Comprehensive Economic and Trade Agreement coming into force today

New Delhi, July 15

Union Minister of Commerce and Industry Piyush Goyal announced the development on the social media platform X, noting that the agreement delivers zero-duty market access for nearly 99 per cent of India's exports and covers almost 100 per cent of the total trade value. The deal is expected to expand avenues for multiple domestic industries, including labor-intensive sectors, small businesses, and professional services.

"Today marks a defining milestone in India-UK ties," Goyal stated. "Under the dynamic leadership of Hon'ble PM @NarendraModi 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."

According to the details shared by the Minister, the pact eliminates tariffs on labor-intensive sectors such as textiles, clothing, leather, gems and jewellery, engineering goods, chemicals, electronics, marine products, furniture, and sports goods.

For the agricultural sector, the agreement provides zero-duty access to all products, with specific exclusions for chicken, pork, eggs, rice, and sugar. It also grants duty-free entry to 97.1 per cent of tariff lines for processed food products, offering Indian exporters an immediate edge in the UK's global agricultural import market, which exceeds USD 90 billion.

Goyal emphasized the broad sector impact, stating, "The #IndiaUKFTA creates unprecedented opportunities for our textiles, leather, gems & jewellery, engineering goods, marine products, chemicals, processed foods, MSMEs, farmers and manufacturers. It also opens new frontiers for our IT, professional, financial, education and business services sectors, while expanding mobility for Indian talent."

The accompanying Agreement on Social Security exempts temporary Indian workers and their employers from contributing to the UK's National Insurance Contribution for up to five years. This provision is projected to benefit over 75,000 professionals and 900 companies across the IT, financial, healthcare, education, telecommunication, and consultancy sectors.

Furthermore, the pact introduces dedicated annual mobility quotas for 1,800 Indian chefs, yoga instructors, and classical musicians, spanning 137 sub-sectors.

Regarding the workforce benefits, Goyal noted, "The Agreement on Social Security further strengthens this partnership by exempting Indian professionals on temporary assignments from double social security contributions for up to 5 years, enhancing the global competitiveness of our workforce."

The Minister expressed appreciation for his counterpart, UK Secretary of State for Business and Trade Peter Kyle, and both negotiating teams for their commitment to finalising the deal.

"I thank my friend and counterpart @PeterKyle, and both negotiating teams, for their commitment in bringing this transformational agreement to fruition. Together, we remain committed to building a resilient, innovation-driven partnership that will drive growth, investment and shared prosperity for generations to come."

— ANI