New Delhi: Prime Minister Narendra Modi hailed a defining milestone in bilateral relations on Wednesday as the India-United Kingdom Comprehensive Economic and Trade Agreement and a landmark Social Security Agreement officially entered into force. The Prime Minister emphasized that these dual pacts would translate high-level diplomatic ambition into tangible economic opportunities, providing fresh momentum to Indian farmers, entrepreneurs, and micro, small, and medium enterprises. According to the federal government, the agreements reflect deep democratic trust and establish a forward-looking framework driven by trade, technology, and mutual investment.
Union Minister of Commerce and Industry Piyush Goyal announced that the free trade deal delivers zero-duty market access for nearly 99 per cent of India’s exports, covering almost 100 per cent of total trade value. The immediate elimination of tariffs is set to benefit crucial labour-intensive sectors, including textiles, clothing, leather, engineering goods, chemicals, electronics, and gems and jewellery. For the agricultural sector, the pact secures duty-free entry to the United Kingdom’s massive global agricultural import market for the vast majority of products, with specific exclusions maintained for sensitive commodities such as rice, sugar, chicken, pork, and eggs.
Alongside the commercial benefits, the concurrent Social Security Agreement provides substantial financial relief to Indian professionals and enterprises. The agreement exempts temporary Indian workers and their employers from contributing to the United Kingdom’s National Insurance Contribution for up to five years, a provision expected to benefit over 75,000 professionals across the information technology, healthcare, finance, and education sectors. Additionally, the deal expands institutional mobility by introducing dedicated annual quotas for skilled Indian talent, including chefs, yoga instructors, and classical musicians across 137 sub-sectors.
