NEWS: The India–UK Comprehensive Economic and Trade Agreement (CETA), along with the Double Contribution Convention (DCC), came into effect on 15 July 2026, deepening bilateral trade and investment ties.
ABOUT CETA
- A comprehensive Free Trade Agreement (FTA) between India and the United Kingdom.
- Aims to boost trade, investment, services, professional mobility, and economic cooperation while protecting sensitive domestic sectors.
KEY HIGHLIGHTS
- UK grants zero-duty access to nearly 99% of Indian exports.
- India provides phased tariff concessions on 5% of tariff lines, safeguarding sectors like dairy, agriculture, millets, edible oils, and gold.
- Expands opportunities for IT, healthcare, engineering, and financial services.
- Promotes professional mobility with transparent rules.
- Protects Make in India and PLI sectors through phased liberalisation.
- Includes quota-based opening for automobiles, including EVs.
DOUBLE CONTRIBUTION CONVENTION (DCC)
- Eliminates dual social security contributions for eligible temporary workers.
- Extends exemption from UK National Insurance contributions from 12 months to 60 months (5 years).
- Requires a Certificate of Coverage (CoC) from EPFO.
- Expected to benefit 75,000+ Indian professionals and 900 companies.
SIGNIFICANCE
- Enhances exports of textiles, pharmaceuticals, marine products, engineering goods, leather, gems & jewellery, and plastics.
- Strengthens India's integration into global value chains.
- Boosts employment, investment, and Global Capability Centres (GCCs).
- Supports India's Viksit Bharat 2047 vision through greater trade competitiveness