New Delhi, July 15 (IANS) Union Commerce and Industry Minister Piyush Goyal on Wednesday said the India-UK Comprehensive Economic and Trade Agreement (CETA) has come into force under the leadership of Prime Minister Narendra Modi, calling it a defining milestone in bilateral ties.
In a post on X, the minister said the India-UK CETA, along with the Agreement on Social Security has become operational, providing zero-duty market access for nearly 99 per cent of India’s exports and covering almost 100 per cent of the trade value.
“Today marks a defining milestone in India-UK ties. Under the dynamic leadership of PM Modi, the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security have come into force,” Goyal said.
According to the minister, the trade agreement will create significant opportunities for sectors including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals, processed foods, as well as MSMEs, farmers and manufacturers.
He added that the pact also opens new avenues for India’s information technology, professional, financial, education and business services sectors, while expanding mobility for Indian talent.
Highlighting 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, enhancing the global competitiveness of the country’s workforce.
Moreover, Goyal thanked his UK counterpart Peter Kyle and the negotiating teams of both countries for their efforts in concluding the agreements.
Under the trade pact, tariffs on a wide range of British products, including Scotch whisky, gin, chocolates, biscuits and cosmetics, will now begin declining.
However, duty reductions for several products will be phased in over the coming years.
The landmark agreement was signed on July 24, 2025, after 14 rounds of negotiations and comprises 30 chapters covering trade in goods and services, digital trade, financial services, intellectual property, innovation, sustainability and government procurement.
Under the pact, India will reduce or eliminate tariffs on 90 per cent of tariff lines, with 85 per cent becoming completely duty-free over the next decade.
Tariffs on British Scotch whisky will be cut from 150 per cent to 75 per cent initially and further reduced to 40 per cent over 10 years, while duties on British automobiles will be lowered gradually under a quota-based mechanism.
–IANS
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