The India-U.K. Comprehensive Economic and Trade Agreement (CETA) and Double Contribution Convention (DCC) will enter into force on July 15, 2026, Commerce Secretary Rajesh Agrawal announced on Tuesday. The deals, signed in July 2025, are among India’s most ambitious trade pacts, covering tariff reductions and social security protections.
Key provisions of the India-UK CETA
The U.K. will immediately eliminate tariffs on 96.8% of its tariff lines, covering 97.7% of trade value. An additional 2% of tariff lines, representing 1.8% of trade value, will see reduced rates under quotas. In total, 98.8% of tariff lines and 99.5% of trade value will be affected.
India will eliminate tariffs on 30.3% of trade value immediately, with 47% more phased out over time. Reduced quota-based tariffs will apply to 12.1% of trade value, covering 89.5% of tariff lines and 89.4% of trade value.
Social security relief under the DCC
The DCC will prevent double social security contributions for Indian workers in the U.K. Currently, Indian employees and employers contribute around 25% of salaries to the U.K.’s national insurance system without receiving benefits. Under the new agreement, workers paying social security in India will be exempt from U.K. contributions for five years.
According to Agrawal, this will benefit over 75,000 Indian workers and 900 employers, calling the DCC a “gamechanger” for India’s services sector.
Sectoral protections and broader impact
The CETA includes 30 chapters addressing digital trade, government procurement, SMEs, innovation, labor, environment, and gender. It also tackles non-tariff barriers like Sanitary and Phytosanitary Measures (SPS) and Technical Barriers to Trade (TBT) to prevent unjustified restrictions.
India’s sensitive sectors—dairy, cereals, pulses, vegetables, gold and jewelry, smartphones, and critical polymers—are protected under the deal. U.K. officials highlighted benefits for financial services, fintech, and infrastructure investment, with Chris Hayward of the City of London Corporation noting the agreement’s role in supporting India’s economic growth.
