A new chapter in trade relations between India and the United Kingdom is going to begin. The ‘Comprehensive Economic and Trade Agreement’ (CETA) between the two countries will officially come into force from July 15, 2026. Along with this, a very important agreement related to social security (DCC) will also come into effect from this day. With this historic step, not only will 99 percent of Indian products get direct entry into the UK market without any duty (tax), but the exemption limit from double tax for Indian professionals working there has also been increased from 3 years to 5 years.
British market becomes completely tax free for Indian goods
Indian exporters are going to get direct benefits from the implementation of this new trading structure. Till now the goods which were heavily taxed in Britain, will now be easily sold there without any duty. The huge import duty of up to 70 percent on processed food, 21.5 percent on marine products, 18 percent on engineering and auto parts, 16 percent on leather and shoes and 12 percent on clothes will now be reduced to zero. In simple language, the goods of small and big factories, farmers and fishermen of India will now be sold in the British markets at their right price. This will give new strength to the Indian manufacturing sector. However, India’s sensitive agricultural sectors like dairy products, grains, apples have been completely protected from the pressure of external imports.
Service sector will get a new flight with professionals
This agreement is going to prove to be a turning point not only for goods but also for India’s service industry. Britain has given entry to India in 137 such service sectors, in which we have considerable dominance. These include IT, professional services, education, telecom and healthcare. The biggest relief has been given to the employees going to Britain. Under the new social security agreement, Indian professionals moving to Britain temporarily will get exemption from double social security contributions (double tax) there for up to 5 years. This will directly benefit more than 75 thousand professionals as well as about 900 companies. Apart from this, under a new and special arrangement, 1,800 Indian chefs, yoga instructors and classical musicians will also get special opportunities to work in Britain every year.
Benefit of common man along with protection of steel industry
Protection of domestic industries is most important in any international trade agreement. In this framework consisting of a total of 30 chapters, India has completely protected the interests of its steel exporters. Despite strict new rules being implemented by Britain on steel from July 1, 2026, 85 percent of India’s steel exports have been kept out of its impact. The remaining area has also been protected through a special quota system. This trade agreement is not limited only to big businessmen, but it will affect every section of the society. This will provide a direct opportunity to women, youth, startups and MSME sector to connect with a large consumer market of the world. The foundation of the partnership, which was laid in May 2021, is now ready to get on the ground after 14 rounds of long talks to make India a strong economic power at the global level.
Leave a Reply