India and the United Kingdom on Wednesday operationalised a free trade agreement. This agreement, called the Comprehensive Economic and Trade Agreement, as per Prime Minister Narendra Modi, will pave the way for deeper ties and economic cooperation between New Delhi and London.
The operationalisation of the India-UK CETA was announced by outgoing Prime Minister Keir Starmer at the G7 Summit in France.
As per PM Modi, the deal will bring fresh momentum to Indian farmers, entrepreneurs, and MSMEs, deepen cooperation in technology, professional services, and innovation, and support greater mobility for skilled Indian talent.
India-UK trade deal | Key takeaways
With the trade agreement, the UK will get wider access to the Indian economy, with phased tariff cuts and quotas for sectors such as automobiles, and openings in procurement, financial services, education, insurance and professional services.
Britain will also remove duties immediately on 96.8% of tariff lines, covering 97.7% of trade value. Furthermore, India will remove duties at once on 64.1% of tariff lines and phase out tariffs on another 21%. Sensitive products will be excluded from this.
As per reports, marine exports, textiles, leather, footwear, gems and jewellery will see no duties, which will help Indian suppliers compete more effectively in the British market.
{{/usCountry}}As per reports, marine exports, textiles, leather, footwear, gems and jewellery will see no duties, which will help Indian suppliers compete more effectively in the British market.
{{/usCountry}}Also Read | ‘India-UK FTA most economically significant pact’
With the deal now in effect, both India and the UK are looking to at least double its trade to an estimated 48 billion pounds by 2030 and boost their GDPs by nearly 5 billion pounds every year.
As per the details shared by the union ministry of commerce and industry, the India-UK CETA will also create rural employement opportunities across food processing units in India and packhouses.
India-UK sign Social Security pact
Along with the trade deal, India and the UK also signed a social security agreement. This agreement, called the Double Contribution Convention, will exempt eligible Indian professionals and employers from paying into Britain's National Insurance system for stays of up to five years, benefiting about 75,000 workers and 900 employers.
Furthermore, Indian professionals in the UK and British professionals in India will no longer have to make double payments for social security taxes.
As per the Indian government, this agreement will also benefit IT, ITes, financial, professional, healthcare, education, engineering, telecommunication and consultancy services.
Additionally, mobility opportunities will be created for around 1,800 Indian chefs, yoga instructors and classical musicians every year.