What happened
The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention (DCC), signed in July last year, are coming into effect. Commerce Secretary Rajesh Agrawal described both instruments as among the most ambitious and aspirational free trade arrangements for India.
According to the official announcement, the United Kingdom will immediately remove tariffs on nearly all tariff lines. India will immediately eliminate tariffs on a smaller share of trade value and will phase out the remaining tariffs for additional portions over time. Both sides also provide quota-based tariff reductions in defined segments.
Background and earlier position
India and the United Kingdom had already negotiated a broader economic partnership that extends beyond market access in goods. The CETA includes chapters on digital trade, government procurement, support for micro, small and medium enterprises, innovation, labour, environment, and gender, showing the shift in free trade agreements from simple tariff cuts to wider regulatory cooperation.
The DCC addresses a recurring problem for Indian workers abroad: double social-security contributions in both countries. Before such conventions, workers and employers could face duplicate payment burdens when domestic social-security obligations overlapped with host-country contribution rules.
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