Prime Minister Narendra Modi has welcomed the formal implementation of the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the India-UK Social Security Agreement, describing the development as a "significant moment" in bilateral relations.

In a post on X, the Prime Minister said the two landmark agreements would deepen economic ties between India and the United Kingdom while creating new opportunities for businesses, professionals, farmers and entrepreneurs.

He said the agreements reflect the shared vision of both countries to strengthen cooperation in trade, technology, innovation and investment.

CETA to Boost Trade and Market Access

According to PM Modi, the Comprehensive Economic and Trade Agreement (CETA) will provide fresh momentum to India's economic growth by expanding access to the UK market for multiple sectors.

He said Indian farmers, entrepreneurs, Micro, Small and Medium Enterprises (MSMEs) and manufacturers are expected to benefit significantly from the agreement.

The trade pact also aims to strengthen collaboration in technology, professional services, innovation and promote greater mobility for skilled Indian professionals.

Social Security Agreement to Benefit Indian Professionals

The accompanying India-UK Social Security Agreement is expected to provide major relief for Indian professionals working temporarily in the United Kingdom.

Under the agreement, eligible Indian employees and their employers will be exempt from contributing to the UK's National Insurance Contribution (NIC) for up to five years, reducing employment costs and improving the global competitiveness of Indian businesses.

The agreement is expected to benefit more than 75,000 Indian professionals and around 900 companies operating in sectors such as information technology, healthcare, education, financial services, telecommunications and consultancy.

Commerce Minister Highlights Trade Benefits

Union Commerce and Industry Minister Piyush Goyal described the agreement as a defining milestone in India-UK relations.

He said the trade pact provides zero-duty market access for nearly 99% of India's exports, covering almost the entire value of bilateral trade.

According to the Commerce Ministry, tariffs will be eliminated on several labour-intensive sectors, including textiles, garments, leather products, gems and jewellery, engineering goods, chemicals, electronics, marine products, furniture and sports goods.

Major Gains for Agriculture and Services

The agreement also offers significant opportunities for India's agricultural sector.

Most agricultural products will receive zero-duty access to the UK market, with limited exclusions such as chicken, pork, eggs, rice and sugar.

Additionally, more than 97% of tariff lines for processed food products will receive duty-free access, improving the competitiveness of Indian exporters in the UK's agricultural import market.

The agreement also introduces annual mobility quotas for 1,800 Indian chefs, yoga instructors and classical musicians, creating new employment opportunities in the UK.

Read more: Piyush Goyal Holds Talks in New York to Strengthen India-US Trade Relations

Strengthening the India-UK Strategic Partnership

PM Modi said the implementation of both agreements demonstrates the trust shared between the world's two democracies and reflects their commitment to building a future-focused partnership.

He added that India and the United Kingdom will continue working together to promote trade, investment, innovation, technology and sustainable economic growth while creating long-term prosperity for both countries.