Modi Highlights India–UK Breakthrough in Trade and Social Security Agreements

Image - Prime Minister's Office

India and the United Kingdom have signed the landmark Comprehensive Economic and Trade Agreement (CETA) along with a Social Security pact, hailed by Prime Minister Narendra Modi as a milestone that will deepen economic linkages, boost exports, and support Indian professionals in the UK.

PM Modi said that the CETA would provide fresh momentum to India's farmers, entrepreneurs and MSMEs by expanding access to the UK market across several vibrant sectors. He added that the agreement on Social Security would provide invaluable support to Indian professionals working temporarily in the United Kingdom and enhance the competitiveness of Indian enterprises.

Background

• Signed: July 24, 2025, in the presence of PM Narendra Modi and UK PM Sir Keir Starmer.
• Negotiations concluded: May 6, 2025.
• Signatories: Commerce Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds.
• Bilateral trade: USD 56 billion, with a target to double by 2030.

Key Features of CETA

• Tariff Elimination: 99% of India’s exports to the UK will enjoy zero-duty access, covering nearly the entire trade basket.
• Benefiting sectors: Textiles, leather, footwear, gems & jewellery, marine products, toys.
• Tariff reduction: Processed foods, textiles, and leather tariffs cut from up to 70% to zero.
• Services Commitments: IT/ITeS, finance, legal, education, telecom, architecture, engineering.
• Professional Mobility: Streamlined pathways for contractual service suppliers, business visitors, intra-corporate transferees, and independent professionals.
• UK quotas: 1,800 Indian chefs, yoga instructors, and artists annually.

Social Security Agreement

• Exemption: Indian workers and employers exempt from UK social security contributions for up to three years.
• Savings: Over ₹4,000 crore, improving take-home pay and competitiveness.

Strategic Impact

• For India: Boosts farmers, MSMEs, artisans, women-led enterprises; expands access to UK markets.
• For the UK: Gains access to India’s fast-growing market; strengthens cooperation in technology and innovation.
• For Both Nations: Reflects trust between democracies; builds a forward-looking partnership driven by trade, technology, investment, and innovation.

Leadership Statements

• PM Narendra Modi: “This is a significant moment in the India–UK partnership. These agreements translate our shared ambition into tangible opportunities for our people.”
• Commerce Minister Piyush Goyal: “This FTA unlocks tariff-free access on 99% of Indian exports to the UK, advancing the ‘Make in India’ initiative and setting the stage for bilateral trade to double by 2030.”

Conclusion

The India–UK CETA and Social Security Agreement mark a transformative step in bilateral relations, opening unprecedented trade opportunities, easing professional mobility, and reinforcing shared prosperity goals.