India and the United Kingdom on Wednesday announced that the Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security Contributions, also known as the Double Contribution Convention (DCC), will come into force on July 15, 2026, ushering in a new phase of bilateral economic cooperation.
Prime Minister Narendra Modi hailed the development as a landmark moment in bilateral relations.
In a post on X, the Prime Minister 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.”
He added: “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.”
According to the Ministry of Commerce and Industry, the development marks a major milestone in India’s economic diplomacy and a significant step towards the country’s Viksit Bharat 2047 vision. The DCC, which will take effect alongside the trade pact, extends the exemption period from dual social security contributions for Indian professionals working temporarily in the UK from three years to five years.
The agreements have completed all internal procedures and ratifications in both countries. Their implementation will activate a comprehensive economic framework aimed at translating policy commitments into tangible trade and investment gains between two major economies.
The foundation for the agreement was laid in May 2021 through the India-UK Enhanced Trade Partnership and the Roadmap 2030, which sought to elevate bilateral ties to a Comprehensive Strategic Partnership and double bilateral trade to USD 100 billion by 2030.
After fourteen rounds of negotiations, the CETA was concluded on May 6, 2025, and formally signed in London on July 24, 2025, by Union Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer. The accompanying Double Contribution Convention was signed on February 10, 2026.
Piyush Goyal termed the simultaneous implementation of the CETA and DCC a major economic breakthrough, saying the agreements would provide immediate duty-free access on 99 per cent of India’s tariff lines and help remove long-standing tariff barriers for sectors such as textiles, leather, marine products, engineering goods and processed foods.
He said the agreement balances export expansion with protection for sensitive domestic sectors through stringent exclusion lists while also safeguarding the financial interests of Indian professionals by eliminating dual insurance contributions during temporary assignments in the UK.
A next-generation trade pact
Comprising 30 chapters, the CETA goes beyond conventional tariff reductions and covers areas such as digital trade, telecommunications, financial services, intellectual property rights and government procurement. The agreement also includes provisions related to innovation, small and medium enterprises, sustainability and transparency.
According to the government, the pact is designed to strengthen supply chains, promote technological collaboration and create a rules-based framework for future economic engagement.
Major export gains
Under the agreement, UK tariffs will be eliminated across a range of Indian exports.
Tariffs of up to 70 per cent on processed food products, 21.5 per cent on marine products, 18 per cent on engineering goods and auto components, 16 per cent on leather and footwear products, 12 per cent on textiles and clothing, and 8 per cent on chemicals and pharmaceutical products will be reduced to zero.
The government said the move is expected to boost the competitiveness of Indian products in the UK market, create opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India’s participation in global value chains.
At the same time, India has safeguarded sensitive sectors, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products, from import competition.
Services and mobility benefits
The UK has offered one of its most comprehensive services packages to India, covering all major sectors and 137 sub-sectors of export interest.
Indian providers in IT and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services are expected to benefit from enhanced market access and greater regulatory certainty.
The agreement also provides mobility pathways for business visitors, intra-corporate transferees, contractual service suppliers, independent professionals and investors.
In a first-of-its-kind arrangement, 1,800 Indian chefs, yoga instructors and classical musicians will be granted dedicated mobility opportunities in the UK each year under the pact.
Social security breakthrough
The Double Contribution Convention exempts Indian workers and employers from making dual social security contributions in the UK during temporary assignments. The exemption period 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 from the arrangement, which is expected to enhance mobility and strengthen India-UK cooperation in the services sector.
Protection for steel exporters
India and the UK have also reached an understanding on the UK’s upcoming steel measures scheduled to take effect from July 1, 2026.
According to the government, 85 per cent of India’s steel exports will remain outside the scope of the new measures. For products covered under the regime, Indian interests have been protected through a combination of country-specific quotas, residual quotas and access under the Authorised Use Scheme.
People-centric agreement
The government said the India-UK CETA has been designed to deliver benefits across a broad section of society.
Farmers are expected to gain access to premium export markets, while fisherfolk stand to benefit from increased seafood exports. Labour-intensive industries could see greater employment generation, and women entrepreneurs, startups, youth and MSMEs are expected to gain improved access to global value chains.
Professionals will also benefit from enhanced mobility provisions and greater opportunities for overseas employment.
With the implementation of the CETA and DCC from July 15, 2026, India and the United Kingdom are set to deepen their strategic partnership while creating new opportunities for trade, investment and economic growth. The government said the agreements will help strengthen India’s integration with global markets and accelerate its journey towards becoming a resilient, competitive and developed economy by 2047.
