Nearly Zero Tax on Indian Goods in Britain From July 15: Who Gains and How

A sweeping trade and social security pact between India and the United Kingdom takes effect on July 15, handing zero customs duty in Britain to roughly 99% of India's exports.

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.

What this means for you
• Across India: Cheaper access to Britain for sectors like textiles, leather, pharma and marine products could create fresh demand and job opportunities for farmers, fishermen and MSMEs.
• For professionals: Over 75,000 Indian employees working temporarily in Britain will now be exempt from double social security contributions for up to 5 years, reducing deductions from their pay.

Questions & Answers

1. When does the India-UK CETA agreement take effect?
The agreement comes into force on July 15.

2. How much of India's exports will benefit from the deal?
About 99% of India's exports will get zero customs duty in Britain.

3. Which sectors gain the most?
Sectors like textiles, engineering, leather, chemicals, medicines, marine products and processed food will benefit.

4. What relief has been given on social security?
Indians working temporarily in Britain will be exempt from double social security contributions, and this relief now lasts 5 years instead of 3.

5. Who signed the agreement and when?
It was signed on July 24, 2025, in London by India's Commerce and Industry Minister Piyush Goyal and Britain's Business and Trade Secretary Jonathan Reynolds.

6. How many Indian chefs and yoga instructors will get special opportunities each year?
Every year, 1,800 Indian chefs, yoga instructors and classical musicians will receive special opportunities.

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