UK
India and UK Sign Historic CETA Deal, Ushering in New Economic Era: In a landmark development, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA), marking a significant milestone in bilateral relations and opening the doors to a new era of economic partnership, growth, and opportunity.
The historic agreement was signed in the presence of Prime Minister Shri Narendra Modi and UK Prime Minister Sir Keir Starmer. Commerce and Industry Minister Mr. Piyush Goyal and UK Secretary of State for Business and Trade Mr. Jonathan Reynolds formalised the deal. Also present at the signing were Dr. S. Jaishankar, Minister of External Affairs, and Ms. Rachel Reeves, Chancellor of the Exchequer.
Boost for Labour-Intensive Sectors
The agreement promises to unlock massive export opportunities for India’s labour-intensive sectors, including textiles, leather, footwear, gems and jewellery, marine products, and toys. Analysts say this will generate large-scale employment, empowering artisans, women-led enterprises, and MSMEs, thereby driving inclusive economic growth.
Unprecedented Market Access
Under CETA, Indian goods will gain zero-duty access on 99% of tariff lines, covering nearly 100% of the trade value. This is expected to significantly enhance India’s export competitiveness in the UK market.
Ambitious Services Commitments
For the first time, the UK has offered ambitious commitments across multiple service sectors. The agreement will benefit IT/ITeS, financial and professional services, business consulting, education, telecom, architecture, and engineering. Experts believe this package will unlock high-value opportunities and spur job creation across both nations.
Enhanced Global Mobility
The deal also includes streamlined pathways for Contractual Service Suppliers, Business Visitors, Intra-Corporate Transferees, and Independent Professionals such as yoga instructors, chefs, and musicians. This provision will enable smoother talent flow and strengthen cross-border collaboration.
Double Contribution Convention: A Major Breakthrough
One of the standout features of CETA is the Double Contribution Convention (DCC), which will exempt Indian workers and their employers from social security contributions in the UK for up to three years. This will significantly improve take-home pay for Indian professionals while reducing costs for Indian companies operating in the UK.
Leaders Welcome the Agreement
Prime Minister Narendra Modi described the agreement as a “historic turning point” that strengthens India-UK economic ties and accelerates India’s journey towards becoming a global economic powerhouse. UK Prime Minister Sir Keir Starmer termed it a win-win for both nations, creating jobs and prosperity on both sides.
This landmark deal is expected to double bilateral trade by 2030, enhance strategic cooperation, and set a new benchmark for India’s trade agreements worldwide.
