New Delhi, 17 June (H.S.):

The Comprehensive Economic and Trade Agreement (CETA) and the Social Security Contribution Agreement between India and the United Kingdom will come into force on July 15, the Ministry of Commerce and Industry announced on Wednesday. The ministry described the agreements as a historic milestone in India's journey towards achieving the vision of Viksit Bharat 2047.

Under the agreement, nearly 99 per cent of India's exports will receive zero-duty access to the UK market, significantly enhancing the competitiveness of Indian products. The ministry said the agreement is expected to provide benefits across almost 100 per cent of the bilateral trade value while giving fresh momentum to trade and investment relations between the two countries.

The implementation of CETA is expected to strengthen India's export potential by improving market access for a wide range of goods. It will also expand opportunities in the services sector, opening new avenues for Indian companies and professionals across 137 sub-sectors, including information technology (IT), IT-enabled services (ITES), professional services, education and business services.

The accompanying Social Security Contribution Agreement extends the duration of the Double Contribution Convention from three years to five years. The move is expected to provide significant relief to Indian professionals and companies operating in the United Kingdom by reducing the burden of dual social security contributions.

Prime Minister Narendra Modi described the agreements as a historic achievement in India-UK relations. He said the pact would substantially boost bilateral trade and investment while creating numerous opportunities for Indian farmers, workers, micro, small and medium enterprises (MSMEs), startups and the innovation ecosystem.

This agreement will also make a significant contribution towards achieving the goal of Viksit Bharat 2047, the Prime Minister said. He added that the pact would further strengthen the strategic partnership between India and the United Kingdom.

Prime Minister Modi also noted that he and British Prime Minister Keir Starmer are currently attending the G7 Summit and expressed satisfaction over the renewed momentum in economic ties between the two countries.

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Hindusthan Samachar / Jun Sarkar