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July 15, 2026 1:17 PM IST

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PM Modi hails India-UK FTA as ‘significant moment’ in bilateral partnership as landmark trade pact comes into force

Prime Minister Narendra Modi on Wednesday described the coming into force of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security as a “significant moment” in bilateral relations, saying the twin agreements would deepen economic ties and create new opportunities for businesses, farmers, professionals and skilled workers in both countries.
 
The landmark agreements, which came into force on July 15, mark a new phase in India-UK economic cooperation and are expected to boost bilateral trade, investment, services exports and professional mobility while strengthening the Comprehensive Strategic Partnership between the two countries.
 
In a post on X, PM Modi said, “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,” the Prime Minister said.
 
He said the CETA would provide fresh momentum to India’s farmers, entrepreneurs and micro, small and medium enterprises (MSMEs), while enabling several vibrant sectors to gain stronger access to the UK market. The agreement would also deepen cooperation in technology, professional services and innovation, besides supporting greater mobility for skilled Indian professionals.
 
Referring to the Agreement on Social Security, PM Modi said it would provide invaluable support to Indian professionals working temporarily in the United Kingdom while enhancing the competitiveness of Indian enterprises.
 
“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 working together for shared prosperity,” he added.
 
Earlier, Union Commerce and Industry Minister Piyush Goyal termed the implementation of the agreements a defining milestone in India-UK relations, highlighting the significant trade and economic benefits expected to accrue from the pact.
 
In a post on X, Goyal said, “Today marks a defining milestone in India-UK ties. Under the dynamic leadership of Hon’ble PM Narendra Modi 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.” 
 
The Commerce Minister said the free trade agreement would create unprecedented opportunities for India’s textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed food sectors, while benefiting MSMEs, farmers and manufacturers.
 
He added that the agreement also opens new opportunities for India’s information technology, professional, financial, education and business services sectors while expanding mobility for Indian talent.
 
Highlighting the importance of the social security agreement, Goyal said it exempts Indian professionals on temporary assignments in the UK from making double social security contributions for up to five years, thereby improving the global competitiveness of India’s skilled workforce.
 
He thanked his British counterpart Peter Kyle and the negotiating teams of both countries for successfully concluding the transformational agreement.
 
Goyal said the agreement would open new avenues for trade, investment and innovation while accelerating PM Modi’s vision of Viksit Bharat 2047.
 
“The agreement, which opens new avenues for trade, investment and innovation, will create unique opportunities for our businesses while further accelerating PM Narendra Modi ji’s vision of Viksit Bharat 2047. Reflecting the capabilities and aspirations of the people of India, this ambitious agreement will empower every section of society. Women, farmers, youth, MSMEs, innovators, professionals and fisherfolk all stand to gain from the opportunities it creates,” he said.
 
Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal also welcomed the implementation of the agreement, describing it as “a defining moment” in India-UK relations.
 
In a post on X, Jaiswal said the agreement secures zero-duty market access for nearly 99 per cent of India’s exports, covering almost the entire trade value, and unlocks unprecedented opportunities for farmers, MSMEs and manufacturers.
 
He said the agreement would provide a significant boost to sectors including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods.
 
Jaiswal also noted that the Agreement on Social Security exempts Indian professionals on temporary assignments in the UK from double social security contributions for up to five years, benefiting India’s skilled workforce.
 
The India-UK Comprehensive Economic and Trade Agreement is a landmark free trade pact aimed at deepening economic ties by expanding market access, promoting investment and strengthening cooperation across goods, services, technology and innovation.
 
The foundation for the agreement was laid through the India-UK Enhanced Trade Partnership and the Roadmap 2030 launched in May 2021, which set the objective of doubling bilateral trade to USD 100 billion by 2030. Following 14 rounds of negotiations, the agreement 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 Sir Keir Starmer.
 
Comprising 30 chapters, CETA covers trade in goods and services, digital trade, telecommunications, financial services, intellectual property, government procurement, innovation, MSMEs, sustainability and transparency. The agreement provides duty-free market access for nearly 99 per cent of India’s exports to the UK by tariff lines, covering almost the entire trade value, while safeguarding sensitive sectors such as dairy, cereals, edible oils and certain agricultural products.
 
The accompanying Double Contribution Convention exempts Indian professionals on temporary assignments in the United Kingdom from dual social security contributions for up to five years, significantly enhancing the mobility and global competitiveness of India’s skilled workforce.

Last updated on: 15th July 2026

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