'Significant moment in India-UK partnership': PM Modi hails landmark free trade agreement
New Delhi, July 15
Prime Minister Narendra Modi on Wednesday described the coming into force of the India-UK Free Trade Agreement and the accompanying Agreement on Social Security as a "significant moment" in bilateral ties.
He said the landmark pacts would deepen economic engagement and create new opportunities for businesses, workers and investors in both countries.
Sharing a post by Union Commerce and Industry Minister Piyush Goyal on X, the Prime Minister said, "This is a significant moment in the India-United Kingdom partnership. With the coming into force of the Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security, our economic linkages are going to get even deeper."
Highlighting the benefits of the trade pact, the Prime Minister said, "Together, these agreements translate our shared ambition into tangible opportunities for our people. The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs. Several vibrant sectors will gain stronger access to the UK market," he said.
"It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent. The Social Security Agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises," he added.
Describing the development as a reflection of the mutual trust between the two democracies, the Prime Minister said, "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."
Earlier, Commerce and Industry Minister Piyush Goyal termed the agreement a defining milestone in India-UK relations and a major achievement under the leadership of Prime Minister Modi.
"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 per cent of India's exports, covering almost 100 per cent of trade value," Goyal said.
According to the minister, the FTA is expected to unlock unprecedented opportunities across key sectors, including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed food, while providing a significant boost to MSMEs, farmers and manufacturers.
Goyal also said the agreement would open new avenues for India's IT, financial, education, professional and business services sectors, while facilitating greater mobility for Indian professionals. The accompanying Social Security Agreement is expected to enhance the competitiveness of Indian companies and workers by exempting Indian professionals on temporary assignments in the UK from paying double social security contributions for up to five years.
The twin agreements are being seen as a major step towards expanding trade and investment flows between India and the UK, while strengthening cooperation in emerging sectors and supporting long-term economic growth in both countries.
— IANS
Reader Comments
This is a massive win for India! 99% of our exports getting zero-duty access? That's huge for our textile and leather industries. And the social security agreement means our IT folks won't get double taxed abroad. Finally, a deal that works for both sides. 🇮🇳🤝🇬🇧
I appreciate the effort but let's be realistic. FTAs with European countries often lead to increased imports of luxury goods while our farmers still struggle with subsidies. Hope our MSMEs actually benefit and we don't just become a market for British cars and whiskey. Need to see the fine print.
Great news for both our nations! As a Brit living in India, I know how much this means for Indian businesses. The social security agreement in particular is a game-changer for professionals. Looking forward to seeing more Indian goods in UK supermarkets and more British investment in Indian startups.
My uncle runs a small textile unit in Tirupur. He's been waiting for such a deal for years. With zero-duty access, our garments can compete better in UK markets. And the social security waiver means our engineers on short-term projects there won't lose money to double taxation. Good move, PM Modi. 👏
It's encouraging to see India forging strong trade ties. But I worry about the impact on local industries if we open up too much. Remember what happened to our dairy sector? We need proper safeguards. Still, the focus on technology and innovation sectors is smart. Let's hope this creates jobs both ways.
Finally something concrete from all those years of negotiations! My brother works in IT in London and he's always complained about the double social security contribution. This exemption for 5 years is a big relief. And for
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.