New Delhi: India and the United Kingdom on Wednesday operationalised the Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security (Double Contribution Convention), marking a major milestone in bilateral economic ties.
The landmark trade pact provides zero-duty access for nearly 99% of Indian exports to the UK, covering almost the entire value of bilateral merchandise trade. On the first day of implementation, export consignments worth over USD 140 million were flagged off from more than 20 ports, airports, Inland Container Depots (ICDs), Special Economic Zones (SEZs) and manufacturing units across the country.
Union Commerce and Industry Minister Piyush Goyal described the agreement as a “defining milestone” in India-UK relations, saying it would create significant opportunities for sectors including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods. He added that the pact would also benefit MSMEs, farmers and manufacturers while opening new avenues for India’s IT, financial, education and professional services sectors.
The accompanying Social Security Agreement exempts Indian professionals on temporary assignments in the UK from making double social security contributions for up to five years, reducing employment costs and improving the competitiveness of Indian talent abroad.
Commerce Secretary Rajesh Agrawal said the agreement followed more than 800 technical sessions across 14 rounds of negotiations and would significantly boost trade in both goods and services between the two complementary economies.
British High Commissioner Lindy Cameron termed the pact a “historic milestone”, noting that bilateral trade currently stands at nearly £48 billion annually. She said the agreement is expected to increase India-UK trade by over £25 billion a year in the long run while contributing nearly £5 billion annually to the GDP of both countries.
The first Certificates of Origin under the agreement were also issued through the eCoO 2.0 digital platform on a self-certification basis, a move aimed at reducing compliance costs and simplifying export procedures, particularly for MSMEs.
Industry bodies welcomed the implementation of CETA, saying duty-free market access and simplified trade procedures would significantly enhance the competitiveness of Indian products in the UK market and generate new employment opportunities across labour-intensive sectors.
