India and the UK announced on Wednesday that the Comprehensive Economic and Trade Agreement (CETA) and the accompanying Agreement on Social Security, also known as the Double Contribution Convention (DCC), will come into force on 15 July 2026, after both countries complete their ratification procedures. Signed as part of the broader India-UK economic partnership framework, the pacts are expected to deepen bilateral trade and ease the movement of professionals. India's ministry of commerce and industry said CETA would provide immediate duty-free access on 99% of India's tariff lines and level the playing field for Indian exporters. Commerce and industry minister Piyush Goyal said the deal would dismantle long-standing tariff walls. Tariffs of up to 70% on processed food, 21.5% on marine products, 18% on engineering goods and auto components, 16% on leather and footwear, 12% on textiles and clothing, and 8% on chemicals and pharmaceuticals will be reduced to zero. Sensitive sectors such as dairy, cereals, millets, edible oils, oilseeds, apples and several vegetables are protected from concessions. The UK has offered a services package covering 137 sub-sectors of export interest. About 1,800 Indian chefs, yoga instructors and classical musicians will get dedicated annual mobility. The DCC exempts Indian professionals on temporary UK assignments from dual social security contributions, raising the exemption period from three to five years, benefiting over 75,000 professionals and 900 companies. The UK expects bilateral trade to rise by £25.5 billion annually in the long run. PM Narendra Modi called it a historic milestone supporting Viksit Bharat 2047.
India-UK CETA and Social Security Agreement to Take Effect from 15 July 2026
India and the UK will bring the CETA and the Double Contribution Convention into force on 15 July 2026 after completing ratification. CETA gives immediate duty-free access on 99% of tariff lines while protecting sensitive sectors, and the DCC raises the social security exemption period from three to five years.
Key facts
- CETA and the Double Contribution Convention (DCC) come into force on 15 July 2026 after ratification by both countries.
- CETA provides immediate duty-free access on 99% of India's tariff lines.
- Tariffs reduced to zero include up to 70% on processed food, 21.5% on marine products, 18% on engineering goods, 16% on leather/footwear, 12% on textiles and 8% on chemicals/pharma.
- Sensitive sectors like dairy, cereals, millets, edible oils, oilseeds and apples are protected from concessions.
- UK services package covers 137 sub-sectors; about 1,800 Indian chefs, yoga instructors and musicians get annual mobility.
- DCC raises the social security exemption period from three to five years, benefiting over 75,000 professionals and 900 companies.
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Practice MCQ from this story
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Consider the following statements regarding the India-UK CETA and the Double Contribution Convention (DCC):\n1. Both agreements will come into force on 15 July 2026 after both countries complete their ratification procedures.\n2. Under the DCC, the social security exemption period for Indian professionals on temporary UK assignments has been reduced from five years to three years.\nWhich of the statements given above is/are correct?
Statement 1 is correct: both the CETA and the DCC come into force on 15 July 2026 after both countries complete ratification. Statement 2 is incorrect: the exemption period was increased from three years to five years, not reduced. Hence only statement 1 is correct.
Source: Livemint
Frequently asked questions
When will the India-UK CETA and the Double Contribution Convention come into force?
Both agreements will come into force on 15 July 2026, after India and the UK complete their ratification procedures.
What duty-free access does CETA provide to India?
CETA provides immediate duty-free access on 99% of India's tariff lines, levelling the playing field for Indian exporters.
Which Indian sectors are protected from tariff concessions?
Sensitive sectors including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products are protected from tariff concessions.
What change does the Double Contribution Convention make to the social security exemption period?
It raises the exemption from dual social security contributions for Indian professionals on temporary UK assignments from three years to five years, benefiting over 75,000 professionals and 900 companies.
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