Prime Minister Narendra Modi on Wednesday hailed the formal launch of the India-UK Comprehensive Economic and Trade Agreement (CETA) and the landmark social security agreement.
Calling it a “significant moment”, the Prime Minister stressed that the bilateral agreements will translate high-level diplomatic ambition into “tangible opportunities”, especially for India’s agricultural sector and small businesses.
In a post on X, Prime Minister Modi said the two agreements will make economic ties “deeper” and “translate our shared ambition into tangible opportunities for our two peoples.”
“This is an important moment in the India-UK partnership! With the Comprehensive Economic and Trade Agreement and the Social Security Agreement coming into force, our economic ties will deepen. Together, these agreements will translate our shared ambition into tangible opportunities for our people. CETA will give new impetus to farmers, entrepreneurs and small and medium-sized businesses. Many vibrant sectors will gain stronger access to the UK market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indians,” said President PM Modi: “Talent.”
Prime Minister Modi noted that the SSA “will provide invaluable support to Indian professionals working temporarily in the UK and enhance the competitiveness of Indian businesses.”
Prime Minister Modi added: “The SSA will provide invaluable support to Indian professionals working temporarily in the UK and will enhance the competitiveness of Indian businesses. 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 to work together for shared prosperity.”
The India-UK Comprehensive Economic and Trade Agreement (CETA) and the Concurrent Agreement on Social Security officially entered into force today, setting a new framework for bilateral trade.
Announcing the development, Union Commerce and Industry Minister Piyush Goyal noted in a social media post that the agreement provides duty-free market access for nearly 99 per cent of India’s exports and covers nearly 100 per cent of the total trade value. The deal is expected to expand the horizons of several local industries, including labour-intensive sectors, small businesses and professional services.
“Today marks a milestone in relations between India and the United Kingdom,” Goyal said. “Under the dynamic leadership of Hon’ble Prime Minister @NarendraModi, the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Social Security Agreement have come into effect, providing duty-free market access for nearly 99% of India’s exports, covering nearly 100% of trade value.”
According to the details shared by the minister, the agreement eliminates customs duties on labor-intensive sectors such as textiles, clothing, leather, gemstones, jewellery, engineering goods, chemicals, electronics, marine products, furniture and sporting goods.
For the agricultural sector, the agreement stipulates that all products are exempt from customs duties, with specific exceptions for chicken, pork, eggs, rice and sugar. It also grants duty-free entry to 97.1 per cent of the tariff lines for processed food products, providing Indian exporters with an immediate advantage in the UK’s global agricultural import market, which exceeds US$90 billion.
Emphasizing on the broad sector impact, Goyal said, “The India-UK FTA creates unprecedented opportunities for the textiles, leather, gems and jewellery, engineering goods, marine products, chemicals, processed foods, SMEs, farmers and manufacturers. It also opens new frontiers for the IT services sectors, professional, financial, educational and business services, while expanding mobility for Indian talent.”
The agreement accompanying Social Security exempts temporary Indian workers and their employers from making the UK National Insurance Contribution for up to five years. It is expected that more than 75,000 professionals and 900 companies in the IT, financial, healthcare, education, communications and consulting sectors will benefit from this allocation.
Furthermore, the agreement stipulates dedicated annual mobility quotas for 1,800 Indian chefs, yoga instructors and classical musicians, covering 137 sub-sectors.
Regarding workforce benefits, Goyal noted, “The Social Security Agreement 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 his appreciation to his counterpart, the British Minister for Business and Trade, Peter Kyle, and the negotiating teams for their commitment to completing the deal.
“I thank my friend and counterpart @PeterKyle, and both negotiating teams, for their commitment to making this transformative agreement a success. Together, we remain committed to building a resilient, innovation-based partnership that will drive growth, investment and shared prosperity for generations to come.” (that I)
