India-UK trade pact, social security agreement to come into effect from 15 July

Harsh Kumar
3 min read17 Jun 2026, 10:33 PM IST
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UK Says India Trade Deal Breaks Record As Implementation Date Is Revealed| FTA| PM Modi| Starmer
Summary
The agreements, signed as part of the broader India-UK economic partnership framework, are expected to deepen bilateral trade and facilitate the movement of professionals between the two countries.

India and the UK on Wednesday announced that the Comprehensive Economic and Trade Agreement (CETA) and the accompanying Agreement on Social Security, also known as the Double Contribution Convention (DCC), will come into force on 15 July 2026, after both countries complete their ratification procedures.

The agreements, signed as part of the broader India-UK economic partnership framework, are expected to deepen bilateral trade and facilitate the movement of professionals between the two countries.

Announcing the implementation date, India's ministry of commerce and industry said CETA would provide an "immediate duty-free access on 99% of our tariff lines" and "effectively level the playing field" for Indian exporters.

The simultaneous enforcement of the CETA and the Double Contribution Convention will “open up significant new opportunities for India's exports”, commerce and industry minister Piyush Goyal said. “By securing immediate duty-free access on 99% of our tariff lines, we have systematically dismantled long-standing tariff walls.”

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According to the ministry, tariffs of up to 70% on processed food products, 21.5% on marine products, 18% on engineering goods and auto components, 16% on leather and footwear products, 12% on textiles and clothing, and 8% on chemicals and pharmaceutical products will be reduced to zero.

India said the agreement protects sensitive sectors, including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products, from tariff concessions.

Services access and social security relief

The ministry said the UK has offered one of its most comprehensive services packages, covering all major sectors and 137 sub-sectors of export interest to India. Indian service providers in information technology (IT) and IT-enabled services, financial services, healthcare, education, engineering, telecommunications and consultancy services are expected to benefit from improved market access and regulatory certainty.

The agreement also provides mobility pathways for business visitors, intra-corporate transferees, contractual service suppliers, independent professionals and investors. About 1,800 Indian chefs, yoga instructors and classical musicians will also get dedicated mobility opportunities annually.

Alongside CETA, the Double Contribution Convention will exempt Indian professionals on temporary assignments in the UK from making social security contributions in both countries. The exemption period has been increased from three years to five years. The commerce ministry said over 75,000 Indian professionals and over 900 companies are expected to benefit.

UK sees trade boost

On the UK side, the government said the trade deal is expected to increase bilateral trade by £25.5 billion annually in the long run, while boosting its GDP by £4.8 billion and real wages by £2.2 billion.

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UK business and trade secretary Peter Kyle said, "We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone."

"The deal gives British exporters an edge over international competitors," he added.

The UK government said industries across the UK would benefit from lower Indian tariffs, with the duty on whiskey reduced from 150% to 40%, automotive tariffs from 100% to 10% under a quota system, and tariffs of up to 22% on cosmetics eliminated either immediately or over a phased period.

The UK also confirmed that the social security agreement would extend the exemption period for its eligible nationals working temporarily in India from 36 months to 60 months. The arrangement will apply reciprocally to eligible Indian professionals working in the UK under the existing visa routes.

India's commerce ministry described the implementation of CETA and the DCC as "a major step in India's journey towards becoming a globally integrated, resilient and competitive economy" and said the agreements would support the country's broader ‘Viksit Bharat 2047’ vision.

Prime Minister Narendra Modi described the announcement on the deal implementation date as “a historic milestone” for India-UK relations. “This agreement will significantly boost our bilateral trade and investment. It will also unlock numerous opportunities for Indian farmers, workers, MSMEs, startups and innovators and contribute meaningfully to the realisation of Viksit Bharat 2047,” he said on X.

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"Both (UK) PM Starmer and I, who are in Evian for the G7 Summit, are naturally very happy with the significant momentum being added to our economic ties," Modi said.

About the Author

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

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