NEW DELHI: After resolving a steel issue, India and the UK on Wednesday announced that the free trade agreement will come into force on July 15, a move which is expected to help double two-way commerce to USD 100 billion by 2030.
The two countries will also implement the Agreement on Social Security or the Double Contribution Convention (DCC) on the same day.
Under this, Indian companies operating in the UK would not have to make social security contributions for up to five years for employees they move from India to support their operations.
"The period of exemption under DCC has been increased from 3 years to 5 years, thereby marking a major gain for India's temporary workers," the commerce ministry said in a statement.
It said that following the successful completion of internal procedures and ratifications by both governments, the agreements will formally enter into force on July 15, 2026.
"The groundwork for this historic agreement was laid in May 2021 through the Enhanced Trade Partnership and the adoption of the India-UK Roadmap 2030, which set the goal of elevating bilateral ties to a Comprehensive Strategic Partnership and doubling trade to USD 100 billion by 2030," it said.
Prime Minister Narendra Modi said that 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," he said in a social media post.
Following fourteen intensive rounds of talks and discussions, negotiations for the CETA were concluded on May 6, 2025.
The agreement was officially signed on July 24 last year in London.
Commerce and industry Minister Piyush Goyal said that the simultaneous enforcement of the CETA and the DCC on July 15 will open up significant new opportunities for India's exports.
The trade pact will see 99 per cent of Indian exports enter the UK duty-free, while reducing tariffs on British products such as cars and whisky.
"By securing immediate duty-free access on 99 per cent of our tariff lines, we have systematically dismantled long-standing tariff walls. This will effectively level the playing field, allowing our textiles, leather, marine, engineering, and processed food sectors to compete with no disadvantage and supply their world-class products," Goyal said.
He added that stringent exclusion lists are actively deployed to insulate our sensitive agricultural and rural economies from import volatility.
"Simultaneously, by exempting our professionals from double insurance contributions, we are protecting the financial interests of our talent pool. This dual breakthrough aggressively expands our global commercial footprint while fiercely guarding domestic sensitivities," Goyal said.
The minister is expected to visit London later this month (June 25-27).
