New Delhi, Jul 15 (PTI) The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) came into force on Wednesday, granting duty-free access to nearly 99 per cent of Indian exports to the UK and paving the way for deeper trade, investment and services ties between the two countries.

Starting Wednesday, 99 per cent of Indian goods entering the UK and 90 per cent of UK goods entering India will either be duty-free or attract reduced tariffs. It will benefit a wide range of sectors on both sides, including automotive, manufacturing, consumer goods, creative industries, and medical technology.

The agreement lowers tariffs across a range of sectors, including textiles, leather, gems and jewellery, engineering goods, marine products, pharmaceuticals and processed food, while expanding market access for services, digital trade and government procurement.

Alongside CETA, the Agreement on Social Security (Double Contribution Convention) exempts Indian professionals on temporary UK assignments of up to 60 months from making social security contributions in both countries, reducing costs for employees and employers.

Commerce Secretary Rajesh Agrawal said that CETA is a pact between two major and complementary economies. It took over 800 technical sessions and 14 rounds of negotiations to conclude this pact.

He said that goods worth USD 140 million were shipped on day one under the agreement.

Agrawal further said that the commerce ministry, along with industry and export promotion councils, will spread awareness about the pact.

India offered tariff concessions on 89.5 per cent of its tariff lines, covering 91 per cent of UK exports, while retaining protections for sensitive sectors such as dairy, cereals, edible oils and certain manufacturing industries through phased tariff reductions and quota-based access. The agreement also provides a phased reduction in duties on British automobiles and alcoholic beverages, while safeguarding domestic producers through quotas and transition periods.

Prime Minister Narendra Modi described the operationalisation of the agreements as "a significant moment in the India-United Kingdom partnership." "With the coming into force of the Comprehensive Economic and Trade Agreement and the Agreement on Social Security, our economic linkages are going to get even deeper. Together, these agreements translate our shared ambition into tangible opportunities for our people," Modi said in a post on X.

He said the trade pact would provide fresh momentum to farmers, entrepreneurs and micro, small and medium enterprises (MSMEs), while giving several sectors stronger access to the UK market. Modi added that the agreement would deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent.

"The social security agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises," Modi said.

The prime minister added that the agreements reflected "the trust between our democracies and our resolve to build a forward-looking partnership driven by trade, technology, investment and innovation".

Merchandise trade between the two countries stood at USD 25.1 billion in 2025-26, while bilateral services trade reached USD 35.4 billion in 2024, according to government data.

The agreement, signed in July last year, is expected to at least double bilateral trade from the current level of about 48 billion pounds annually by 2030 while boosting long-term economic growth in both countries.

The government said the agreement is expected to improve export competitiveness, attract investment and deepen cooperation in technology, innovation and professional mobility. It said the deal would create new opportunities for labour-intensive sectors such as textiles, footwear and gems and jewellery, while expanding market access for India's IT, engineering and pharmaceutical industries.

"The agreement, which opens new avenues for trade, investment and innovation, will create unique opportunities for our businesses," Commerce and Industry Minister Piyush Goyal said in a social media post.

Britain hailed the pact, which is also known as the UK-India Free Trade Agreement (FTA), as a 'watershed moment' in bilateral ties.

"UK and India total trade, worth 48 billion pounds in 2025, is set for an immediate boost with consumers now enjoying cheaper, quicker, and easier access to the best of British and Indian products and services across both countries," it said in a statement.

To celebrate this historic occasion, a special package of select British goods arrived at the British Deputy High Commission in Mumbai on Wednesday morning aboard a British Airways flight. "The package contained goods from the UK benefiting from reduced tariffs, including cosmetics, food products, and alcoholic beverages," it said.

Harjinder Kang, UK's Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, said: "This is a watershed moment for the UK-India partnership. As the landmark trade deal comes into force, what better than having select British products arriving in one of the very first UK flights into India this morning - with thanks to support from British Airways. Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker and easier trade. We are all excited to take full advantage of it." In New Delhi, British High Commissioner Lindy Cameron said the pact is a "new gold standard" of trade deals, and it sends a message to the rest of the world that rules-based order works.

"The UK-India trade deal brings sweeping benefits for a wide range of sectors. From today, import duty on Scotch whisky has been cut from 150 per cent to 75 per cent, which should make a really significant difference to the price the consumer pays," she said.

Cameron also said that import duties on premium UK-built cars will also begin to fall from over 110 per cent to 10 per cent, making iconic British cars cheaper for Indian consumers. PTI RR ANZ HVA

India-UK trade liberalisation expands tariff preferences, services access and skilled professional mobility while preserving protections for sensitive domestic sectors. The India-United Kingdom Comprehensive Economic and Trade Agreement establishes preferential tariff treatment for goods and expands cooperation in services, digital trade, government procurement, investment and professional mobility. India retains protections for sensitive sectors through phased tariff reductions and quota-based access, while duties on British automobiles and alcoholic beverages are reduced in stages. The accompanying social-security convention exempts eligible Indian professionals temporarily assigned to the United Kingdom from simultaneous contributions in both jurisdictions, supporting skilled-worker mobility and reducing employment-related costs.