Union Commerce and Industry Minister Piyush Goyal announced on Wednesday that the India-UK Comprehensive Economic and Trade Agreement (CETA) has been implemented, marking a significant moment in bilateral relations. This agreement, led by Prime Minister Narendra Modi, offers zero-duty market access for nearly 99% of India’s exports and encompasses almost the entire trade value. Goyal emphasized the opportunities this trade deal will bring to various sectors, including textiles, gems and jewelry, engineering goods, and more.
The pact also extends avenues for India’s information technology, financial, and professional services sectors, as well as enhancing mobility for Indian talent. Additionally, the Agreement on Social Security exempts Indian professionals working temporarily in the UK from double social security contributions for up to five years, boosting the global competitiveness of India’s workforce. Goyal expressed gratitude to UK counterpart Peter Kyle and both countries’ negotiating teams for their efforts in finalizing these agreements.
Under this trade agreement, tariffs on a range of British products such as Scotch whisky, gin, chocolates, biscuits, and cosmetics will see a gradual reduction. While some duty reductions will be phased in over the coming years, the agreement, signed in 2025 after extensive negotiations, covers various aspects including trade in goods and services, digital trade, intellectual property, and sustainability. Over the next decade, India plans to reduce or eliminate tariffs on 90% of tariff lines, with 85% becoming completely duty-free.
