New Delhi: India and the United Kingdom have announced that their landmark Comprehensive Economic and Trade Agreement (CETA) and the accompanying social security pact will come into force on July 15, marking a major milestone in bilateral relations and India’s economic ambitions under the Viksit Bharat 2047 vision.
The announcement follows the completion of all domestic ratification and implementation procedures in both countries, paving the way for deeper cooperation in trade, investment, services and professional mobility between the world’s fifth and sixth-largest economies.
The Ministry of Commerce and Industry described the agreements as the foundation of a “next generation economic corridor” that will transform policy commitments into tangible economic gains. Alongside CETA, the Double Contribution Convention (DCC) on social security will also take effect, providing relief to thousands of Indian professionals working temporarily in the UK.
Under the DCC, the exemption period from making dual social security contributions has been extended from three years to five years. The government estimates that more than 75,000 Indian professionals and over 900 companies will benefit through lower employment costs and improved competitiveness.
Prime Minister Narendra Modi welcomed the development, calling it “a historic milestone for India-UK relations”. He said the agreement would boost bilateral trade and investment while creating new opportunities for farmers, workers, MSMEs, startups and innovators.
The trade pact offers zero-duty access to nearly 99 per cent of India’s exports to the UK and covers a wide range of sectors, including digital trade, financial services, telecommunications and government procurement. Key export sectors such as textiles, leather, marine products, engineering goods and processed food are expected to gain significantly from the removal of tariffs.
Both governments believe the agreement will usher in a new era of economic cooperation, strengthen supply chains and create jobs, laying the foundation for sustained growth in the years ahead.
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