India-UK Free Trade Deal Boosts Services, Professional Mobility And Exports

The India–UK Comprehensive Economic and Trade Agreement (CETA) goes beyond trade in goods, focusing on services export, a key strength of India’s economy.

India currently exports $19.8 billion worth of services to the UK. The agreement aims to grow this further by easing the movement of professionals across sectors like IT, healthcare, finance, and education.

CETA allows streamlined entry for contractual service suppliers, business visitors, intra-corporate transferees, and independent professionals. This includes yoga instructors, chefs, and musicians.

Up to 1,800 Indian professionals from these fields can now work in the UK annually.

Double Contribution Exemption and Broader Access

One of the major breakthroughs under the India–UK Comprehensive Economic and Trade Agreement (CETA) is the Double Contribution Convention.

Indian workers and employers on temporary assignments in the UK will not have to pay UK social security contributions for up to three years. Around 75,000 workers and over 900 companies will benefit, saving more than Rs 4,000 crore.

The FTA includes a broad services package. It covers IT, IT-enabled services, finance, business consulting, education, telecom, architecture, and engineering. These sectors are expected to generate high-value opportunities and create new jobs.

The deal also introduces a structured framework for temporary professional movement under clear and predictable entry rules.

Simplified Compliance and Tariff Benefits

The agreement simplifies compliance rules. Exporters can now self-certify the origin of goods, cutting time and paperwork.

UK importers can use their knowledge to certify origin, making trade smoother. For small consignments under 1,000 pounds, origin documents are not required, which benefits e-commerce and small businesses.

Product-specific rules of Origin align with India’s supply chains in key sectors like textiles, machinery, pharmaceuticals, and processed food.

Bilateral trade between India and the UK has already touched $56 billion. The agreement aims to double this by 2030.

Commerce and Industry Minister Piyush Goyal said CETA opens new paths for trade and investment while protecting India’s interests. It combines tariff cuts, easier trade rules, strong service sector provisions, and smoother professional mobility.

The FTA gives 99 per cent of Indian exports duty-free access to the UK. This covers nearly 100 per cent of trade value.

Key sectors include textiles, leather, marine products, gems and jewellery, toys, and high-growth areas like engineering goods, chemicals, and auto components. This is expected to boost job creation and empower artisans, women-led businesses, and MSMEs.

India has opened 89.5 per cent of its tariff lines for UK goods, covering 91 per cent of UK exports. It has protected sensitive and strategic sectors. The removal of duties will also make imported products more affordable and diverse for Indian consumers.

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