India-UK trade deal a 'significant moment', to create opportunities: PM

PM Modi hailed the commencement of the India-UK CETA and a Social Security Agreement, saying they'll deepen economic ties and create tangible opportunities for farmers, MSMEs, and professionals working temporarily in the UK.

'A Significant Moment': PM Modi on New India-UK Pacts

Prime Minister Narendra Modi on Wednesday hailed the formal commencement of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and a landmark Social Security Agreement. Describing it as a "significant moment," the Prime Minister emphasized that dual agreements would translate high-level diplomatic ambition into "tangible opportunities," particularly for India's agrarian sector and small businesses.

In a post on X, PM Modi said the two agreements will make economic linkages "even deeper" and "translate our shared ambition into tangible opportunities for our people."

"This is a significant moment in the India-United Kingdom partnership! With the coming into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic linkages are going to get even deeper. Together, these agreements translate our shared ambition into tangible opportunities for our people. The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs. Several vibrant sectors will gain stronger access to the UK market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent," PM Modi said.

PM Modi noted that the social security agreement will "provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises."

"The social security agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises. This moment reflects the trust between our democracies and our resolve to build a forward-looking partnership driven by trade, technology, investment and innovation. India and the UK will continue working together for shared prosperity," PM Modi added.

Details of the Landmark Agreements

The India-UK Comprehensive Economic and Trade Agreement (CETA) and the concurrent Agreement on Social Security officially entered into force today, establishing a new framework for bilateral commerce.

Union Minister of Commerce and Industry Piyush Goyal announced the development and in a social media post, noted that the agreement delivers zero-duty market access for nearly 99 per cent of India's exports and covers almost 100 per cent of the total trade value. The deal is expected to expand avenues for multiple domestic industries, including labor-intensive sectors, small businesses, and professional services.

"Today marks a defining milestone in India-UK ties," Goyal stated. "Under the dynamic leadership of Hon'ble PM @NarendraModi ji, the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security, have come into force, delivering zero-duty market access for nearly 99% of India's exports, covering almost 100% of trade value."

Broad Sector Impact and Tariff Elimination

According to the details shared by the Minister, the pact eliminates tariffs on labour-intensive sectors such as textiles, clothing, leather, gems and jewellery, engineering goods, chemicals, electronics, marine products, furniture, and sports goods.

For the agricultural sector, the agreement provides zero-duty access to all products, with specific exclusions for chicken, pork, eggs, rice, and sugar. It also grants duty-free entry to 97.1 per cent of tariff lines for processed food products, offering Indian exporters an immediate edge in the UK's global agricultural import market, which exceeds USD 90 billion.

Goyal emphasized the broad sector impact, stating, "The India UK FTA creates unprecedented opportunities for our textiles, leather, gems & jewellery, engineering goods, marine products, chemicals, processed foods, MSMEs, farmers and manufacturers. It also opens new frontiers for our IT, professional, financial, education and business services sectors, while expanding mobility for Indian talent."

Social Security Pact and Mobility

The accompanying Agreement on Social Security exempts temporary Indian workers and their employers from contributing to the UK's National Insurance Contribution for up to five years. This provision is projected to benefit over 75,000 professionals and 900 companies across the IT, financial, healthcare, education, telecommunication, and consultancy sectors.

Furthermore, the pact introduces dedicated annual mobility quotas for 1,800 Indian chefs, yoga instructors, and classical musicians, spanning 137 sub-sectors.

Regarding the workforce benefits, Goyal noted, "The Agreement on Social Security further strengthens this partnership by exempting Indian professionals on temporary assignments from double social security contributions for up to 5 years, enhancing the global competitiveness of our workforce."

The Minister expressed appreciation for his counterpart, UK Secretary of State for Business and Trade Peter Kyle, and both negotiating teams for their commitment to finalising the deal. "I thank my friend and counterpart @PeterKyle, and both negotiating teams, for their commitment in bringing this transformational agreement to fruition. Together, we remain committed to building a resilient, innovation-driven partnership that will drive growth, investment and shared prosperity for generations to come." (ANI)

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