India-UK pacts reflect mutual trust: PM
New Delhi, July 16 -- Prime Minister Narendra Modi on Wednesday described the operationalisation of the India-UK free trade agreement and a parallel social security pact as a reflection of the "trust" between the two democracies and their "resolve to build a forward-looking partnership" driven by trade, technology, investment and innovation.
"This is a significant moment in the India-United Kingdom partnership! With the coming into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic linkages are going to get even deeper. Together, these agreements translate our shared ambition into tangible opportunities for our people," Modi said in a post on X.
The CETA will give fresh momentum to our farmers, entrepreneurs and micro, small and medium enterprises (MSMEs), he said. "Several 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 Indian talent."
Modi said the social security agreement would provide "invaluable support" to Indian professionals working temporarily in the UK while strengthening the competitiveness of Indian enterprises. "India and the UK will continue working together for shared prosperity," he added.
Commerce and industry minister Piyush Goyal, currently on a visit to three European Union member states, described the operationalisation of CETA as "a defining milestone" in India-UK ties. His visit comes as India and the EU move closer to finalising the legal text of their proposed trade agreement, often described as the "mother of all FTAs".
"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," Goyal said in a post on X.
The India-UK FTA, formally known as CETA, gives duty-free access to almost all Indian goods in the UK market, boosting the competitiveness of exporters in labour-intensive sectors such as textiles, leather, footwear, engineering goods, pharmaceuticals, and gems and jewellery.
Alongside CETA, the Double Contribution Convention (DCC) has also come into force. The complementary agreement exempts professionals on temporary assignments from mandatory social security contributions in the host country on a reciprocal basis, providing a significant boost to bilateral services trade.The agreements drew an enthusiastic response from exporters. Commerce secretary Rajesh Agrawal and British high commissioner to India Lindy Cameron flagged off an inaugural shipment of $10 million worth of jewellery exported by more than 30 Indian exporters from six cities.
"It is the first jewellery consignment to benefit from the preferential market access created under the India-UK CETA," Gem and Jewellery Export Promotion Council (GJEPC) chairman Kirit Bhansali said. CETA eliminates import tariffs of up to 4% in Britain, giving Indian exporters a significant competitive advantage in the UK's $4 billion jewellery market, he added.
EEPC India chairman Pankaj Chadha said India's engineering exports to the UK are projected to exceed $7.5 billion by 2029-30, driven by tariff elimination and expanded opportunities under the agreement. The UK is already among India's top five engineering export markets, with exports rising to $4.7 billion in 2025-26.
Goyal said CETA creates "unprecedented opportunities" for textiles, leather, gems and jewellery, engineering goods, marine products, chemicals, processed foods, MSMEs, farmers and manufacturers....
To read the full article or to get the complete feed from this publication, please
Contact Us.