In a major stride for India’s global economic engagement, India and the UK on Wednesday announced that the Comprehensive Economic and Trade Agreement (CETA) will enter into force on July 15, 2026, marking a new phase in the country’s economic diplomacy.
Simultaneously, the Social Security Agreement — also referred to as Double Contribution Convention (DCC) — will also come into effect on July 15, reinforcing the mobility and competitiveness of Indian professionals in the UK.
Also, the period of exemption under DCC has been increased from 3 to 5 years, thereby marking a major gain for India’s temporary workers.
Prime Minister Narendra Modi, on his official X handle, said “A historic milestone for India-UK relations. Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will enter into force on 15th July 2026. This agreement will significantly boost our bilateral trade and investment.”
“It will also unlock numerous opportunities for Indian farmers, workers, MSMEs, startups and innovators and contribute meaningfully to the realisation of Viksit Bharat 2047. Both PM Starmer and I, who are in Evian for the G7 Summit, are naturally very happy with the significant momentum being added to our economic ties,” as per the tweet.
With the entry into force, Indian exporters will benefit from the complete elimination of UK tariffs across several key sectors. Tariffs of up to 70% on processed food products, up to 21.5% on marine products, up to 18 percent on engineering goods and auto components, up to 16% on leather and footwear products, up to 12% on textiles and clothing, and up to 8% on chemicals and pharmaceutical products will be reduced to zero.
The immediate duty-free access secured under CETA is expected to significantly enhance the competitiveness of Indian exports in the UK market, generate new opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India’s integration into global value chains.
This immediate duty-free window injects immense pricing power into the engine rooms of Indian manufacturing, allowing traditional artisans, large-scale factories, and regional industrial hubs to compete entirely on merit from day one of implementation.
At the same time, India has protected sensitive sectors including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products.
The UK has provided one of its most comprehensive services commitments ever, covering all major services sectors and 137 sub-sectors of export interest to India.
Indian service providers in IT and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services will benefit from enhanced market access and greater regulatory certainty.
Meanwhile, the Social Security Agreement exempts Indian workers and employers from making dual social security contributions in the UK during temporary assignments. The period of exemption has been increased from 3 years to 5 years.
More than 75,000 Indian professionals and over 900 companies are expected to benefit. The agreement will support mobility and continued social security coverage of the employees on temporary overseas assignments. This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries.
