There is big news for India's businesses, farmers and professionals. The Comprehensive Economic and Trade Agreement (CETA) and the Social Security Agreement (DCC) signed between India and the United Kingdom come into force on July 15. The government believes the deal opens a major gateway of benefits for India's exports, trade and its workforce.
What Zero Duty on 99% of Exports Means
The biggest highlight of the pact is that nearly 99% of goods heading from India to Britain will no longer face any customs duty. In plain terms, products from sectors such as textiles, engineering, leather, chemicals, medicines, marine products and processed food will land cheaper in the British market and stay ahead of the competition. When the tax burden disappears, prices fall and demand rises, and that gain flows straight to farmers, fishermen, small and medium enterprises (MSMEs) and larger industries.
Fresh Openings for Services and Professionals
The deal is not limited to goods. In the services space, Indian companies and professionals will get better access to the British market across 137 sub-sectors, including IT, ITES, education, healthcare, engineering, financial and professional services. On top of that, 1,800 Indian chefs, yoga instructors and classical musicians will receive special work opportunities there every year.
A Major Relief on Social Security
Under the social security agreement, Indian employees and companies working in Britain for a temporary period will be exempted from paying a double social security contribution. Earlier this relief lasted only 3 years, but it has now been extended to 5 years. This is expected to help more than 75,000 Indian professionals and over 900 companies.
How and When It Came Together
According to the government, the agreement is a significant step toward the goal of a ‘Viksit Bharat 2047’ and will lend fresh strength to the economic and strategic ties between the two nations. Agreement on CETA did not come easily; it followed 14 rounds of lengthy negotiations before both sides finally reached consensus on May 6, 2025. After that, on July 24, 2025, in London, India's Commerce and Industry Minister Piyush Goyal and Britain's Business and Trade Secretary Jonathan Reynolds signed the pact. Prime Minister Narendra Modi and British Prime Minister Keir Starmer were also present on the occasion.
