India-UK free-trade pact (CETA) to enter into force on 15 July 2026

India's Comprehensive Economic and Trade Agreement with the UK — and the companion Double Contribution Convention on social security — take effect from 15 July, giving ~99% of India's exports zero-duty access to the UK market.

What happened

• India and the United Kingdom announced that the Comprehensive Economic and Trade Agreement (CETA) will enter into force on 15 July 2026, after both governments completed internal procedures and ratifications.
• The companion Agreement on Social Security — the Double Contribution Convention (DCC) — comes into effect the same day; the exemption period for Indian temporary workers from UK social-security contributions is raised from 3 years to 5 years.
• CETA provides zero-duty access on about 99% of India's exports to the UK, covering nearly 100% of trade value, and is set to expand services exports across 137 sub-sectors including IT/ITeS, professional, education and business services.
• The pact was concluded on 6 May 2025 after fourteen rounds of negotiations and signed on 24 July 2025 in London by Commerce Minister Piyush Goyal and the UK's Secretary of State for Business and Trade Jonathan Reynolds; the DCC was signed on 10 February 2026.
• It builds on the Enhanced Trade Partnership and India-UK Roadmap 2030 (May 2021), which set the goal of doubling bilateral trade to USD 100 billion by 2030.

For Prelims

• CETA: A Comprehensive Economic and Trade Agreement is a wide free-trade pact covering goods, services, investment, government procurement and rules; the India-UK CETA is India's most significant FTA with a major developed/European economy.
• Double Contribution Convention (DCC): A bilateral social-security agreement ensuring Indian professionals on short UK postings don't pay social-security contributions in both countries — now exempt for up to 5 years (raised from 3).
• Zero-duty access: CETA eliminates UK tariffs on ~99% of Indian tariff lines (covering nearly 100% of trade value) — benefiting labour-intensive exports like textiles, leather, footwear, gems & jewellery and marine products.
• Origins: Negotiations were launched in January 2022; the deal was concluded 6 May 2025, signed 24 July 2025 in London, and rests on the India-UK Roadmap 2030 (May 2021) and a Comprehensive Strategic Partnership.
• India's FTA track record: Recent FTAs include the India-UAE CEPA (2022), India-Australia ECTA (2022) and the India-EFTA TEPA (2024); the India-EU FTA is under negotiation.
• Trade context: The Roadmap 2030 targets doubling bilateral trade to USD 100 billion by 2030; the UK is a major services and investment partner for India.
• Don't confuse: CETA (the trade agreement) is distinct from the DCC (the social-security pact) — they were signed separately but enter into force together; an FTA's signing is not the same as its entry into force, which needs ratification.

For Mains

Syllabus: GS2.18 · GS3.8 · Linkage L1