The two agreements, which officially came into force on July 15, mark a new phase in India-United Kingdom economic cooperation and are expected to strengthen bilateral trade, investment, services exports and professional mobility while reinforcing the Comprehensive Strategic Partnership between the two nations.
In a post on X, Prime Minister Modi said the implementation of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security represented a significant moment in the India-United Kingdom partnership. He said the agreements would further strengthen economic linkages between the two countries and transform their shared ambitions into tangible opportunities for their people.
The Prime Minister said the Comprehensive Economic and Trade Agreement would provide fresh momentum to India's farmers, entrepreneurs and micro, small and medium enterprises while enabling several high-growth sectors to secure stronger access to the United Kingdom market. He added that the agreement would deepen cooperation in technology, professional services and innovation while supporting greater mobility for skilled Indian professionals.
Referring to the Agreement on Social Security, Prime Minister Modi said it would provide valuable support to Indian professionals working temporarily in the United Kingdom and enhance the competitiveness of Indian enterprises. He said the implementation of both agreements reflected the trust between the two democracies and their commitment to building a forward-looking partnership driven by trade, technology, investment and innovation. He added that India and the United Kingdom would continue working together for shared prosperity.
Earlier, Union Commerce and Industry Minister Piyush Goyal described the implementation of the agreements as a defining milestone in India-United Kingdom relations and highlighted the extensive trade and economic benefits expected from the landmark pact.
In a post on X, Goyal said the Comprehensive Economic and Trade Agreement and the Agreement on Social Security had come into force under the leadership of Prime Minister Narendra Modi, delivering zero-duty market access for nearly 99 per cent of India's exports and covering almost the entire trade value between the two countries.
The Commerce Minister said the free trade agreement would create unprecedented opportunities for India's textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed food sectors while benefiting micro, small and medium enterprises, farmers and manufacturers.
He further stated that the agreement would create new opportunities for India's information technology, professional, financial, education and business services sectors while expanding mobility for Indian talent across international markets.
Highlighting the significance of the Agreement on Social Security, Goyal said Indian professionals on temporary assignments in the United Kingdom would be exempt from making double social security contributions for up to five years, significantly improving the global competitiveness of India's skilled workforce.
Goyal expressed gratitude to his British counterpart, Peter Kyle, and the negotiating teams of both countries for successfully concluding what he described as a transformational agreement.
He said the agreements would open new avenues for trade, investment and innovation while accelerating Prime Minister Narendra Modi's vision of a Developed India by 2047. He added that the agreement reflected the capabilities and aspirations of the people of India and would empower every section of society, including women, farmers, youth, micro, small and medium enterprises, innovators, professionals and fisherfolk.
Ministry of External Affairs spokesperson Randhir Jaiswal also welcomed the implementation of the agreements, describing them as a defining moment in India-United Kingdom relations.
In a post on X, Jaiswal said the agreement secured zero-duty market access for nearly 99 per cent of India's exports, covering almost the entire trade value, and would unlock unprecedented opportunities for farmers, micro, small and medium enterprises and manufacturers.
He said the agreement would provide a major boost to sectors including textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods.
Jaiswal also noted that the Agreement on Social Security exempts Indian professionals on temporary assignments in the United Kingdom from double social security contributions for up to five years, benefiting India's skilled workforce and strengthening international professional mobility.
The India-United Kingdom Comprehensive Economic and Trade Agreement is a landmark free trade pact designed to deepen economic ties by expanding market access, promoting investment and strengthening cooperation across trade in goods, services, technology and innovation.
The foundation for the agreement was laid through the India-United Kingdom Enhanced Trade Partnership and the Roadmap 2030, launched in May 2021 with the objective of doubling bilateral trade to 100 billion United States dollars by 2030. After 14 rounds of negotiations, the agreement was concluded on May 6, 2025, and formally signed in London on July 24, 2025, by Union Commerce and Industry Minister Piyush Goyal and United Kingdom Secretary of State for Business and Trade Jonathan Reynolds in the presence of Prime Minister Narendra Modi and United Kingdom Prime Minister Sir Keir Starmer.
Comprising 30 chapters, the Comprehensive Economic and Trade Agreement covers trade in goods and services, digital trade, telecommunications, financial services, intellectual property, government procurement, innovation, micro, small and medium enterprises, sustainability and transparency. The agreement provides duty-free market access for nearly 99 per cent of India's exports to the United Kingdom by tariff lines, covering almost the entire trade value while safeguarding sensitive sectors such as dairy, cereals, edible oils and selected agricultural products.
The accompanying Double Contribution Convention exempts Indian professionals on temporary assignments in the United Kingdom from dual social security contributions for up to five years, significantly enhancing the mobility and global competitiveness of India's skilled workforce.
The implementation of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security marks one of the most significant developments in India-United Kingdom economic relations in recent years. By expanding market access, strengthening investment, boosting exports, improving professional mobility and protecting key domestic sectors, the agreements establish a comprehensive framework for long-term economic cooperation and reinforce the strategic partnership between the two countries.
About The Author
.jpg)
Comment List