After more than three years of negotiations, the UK's biggest post-Brexit trade deal is about to become a reality.
From 15 July, the UK-India Comprehensive Economic and Trade Agreement (CETA) and the accompanying Double Contribution Convention (DCC) will come into force, opening the door to deeper trade, stronger investment, closer technology collaboration and easier movement of skilled professionals between two of the world's fastest-growing economies.
Described by both governments as a landmark agreement, the UK-India Comprehensive Economic and Trade Agreement signals an ambition to move beyond traditional trade by fostering innovation, supporting businesses and strengthening a partnership that spans commerce, science and technology. The vision was reinforced during talks in London between the UK'sSecretary of State for Business and Trade, Rt Hon Peter Kyle MP, and India's Commerce and IndustryMinister Piyush Goyal, as both sides reaffirmed their commitment to deepening trade, innovation and economic cooperation.
In an exclusive interview with Asian Voice, Rt Hon Peter Kyle shares how the government plans to turn that ambition into action, the opportunities the agreement creates for British and diaspora businesses, and why he believes the UK-India relationship is entering one of its most significant phases yet.
Beyond headline announcements, what tangible changes will an Indian engineer, IT professional, doctor, academic, or entrepreneur actually see over the next two years?
Trade between our two nations will become more profitable as tariffs are removed across a wide range of goods. This agreement also provides greater access to the best of what both countries produce.
Take the automotive sector as an example. India is experiencing strong demand for high-end vehicles, an area in which Britain excels. At the same time, there is significant demand in the UK for more affordable cars, which India is well placed to supply. This deal is designed to support both markets, allowing each country to benefit from the other’s strengths.
As a result, the agreement is good for manufacturers on both sides, but also for consumers in both countries, who will gain access to more choice and better value. That is why I am so excited about this deal; people will feel its benefits in a very real way.
Are there any specific opportunities that will be created for diaspora-led SMEs and startups?
Yes, there will be. We are digitising a range of procedures involved in cross-border trade, reducing paperwork and streamlining systems, while also making trade more profitable through the removal of tariffs. In addition, the agreement strengthens protections for intellectual property, which is essential for businesses selling goods internationally and seeking to safeguard their innovations.
Taken together, these measures will allow businesses, entrepreneurs and innovators to grow more easily across both markets and benefit from the combined strength of our economies. Crucially, this is not just about enabling trade between the two nations; it is also about making the process of trading much easier.
Is the Double Contribution Convention going to be a short-term tax saving commitment or can it evolve into a deeper social security reform?
Yes, it is going to be a short-term tax-saving commitment. This is a fairly standard approach that we include in many of our trade agreements. India, for example, has similar provisions with several of its free trade partners, and in the UK we also apply the same arrangements in agreements with countries such as Canada and Japan.
Essentially, these provisions ensure that individuals involved in commercial activity are able to travel and carry out business where needed. It is a routine measure used across most of our free trade.
Will the UK-India trade agreement include any provisions that facilitate the movement of skilled Indian talent?
There are already provisions in place allowing people to move between our two countries. Net migration between the two is not expected to change as a result of the free trade agreement. We already have very generous arrangements that enable people from both nations to travel, work, and experience what each country has to offer. That is not affected by the agreement we have just signed. This is a trade arrangement focused on improving and streamlining the flow of goods and services, rather than changing migration policy.
Is the UK prepared to pursue mutual recognition arrangements with India in sectors such as healthcare, technology, finance and education?
At the moment, this is a comprehensive free trade agreement that will eliminate tariffs on more than 90% of the goods traded between our two countries, making trade significantly more competitive and profitable.
More importantly, this agreement builds on an already strong and growing partnership. We have signed a defence agreement, we are working closely together on critical minerals, and our diplomatic cooperation is stronger than it has been for decades. The free trade agreement is another important step in deepening that relationship.
Of course, once this agreement is in place, we will continue to explore new opportunities for collaboration. The world is changing rapidly, with significant disruptions affecting the global economy, and it is important that our two countries are well positioned to respond and seize new opportunities as they emerge.
I am confident that the close relationship I have with my counterpart, Commerce Minister Piyush Goyal, together with the strong partnership between our two Prime Ministers, will continue to grow. That will enable the UK and India to build on this agreement and identify further areas for cooperation and shared prosperity in the years ahead.
Key Takeaways
- Landmark trade deal: CETA strengthens economic ties and boosts bilateral trade between India and the UK.
- Lower tariffs: India gains duty-free access on 99% of exports to the UK, while UK exporters benefit from significant tariff cuts in India.
- Boost for Indian exports: Tariffs of up to 70% on marine products, textiles, leather and processed foods have been eliminated.
- Win for agriculture: Nearly all Indian agricultural exports will enter the UK duty-free, with limited exceptions.
- More opportunities for businesses: Greater market access for UK and Indian firms in IT, financial services, education, healthcare, telecoms and construction.
- Easier movement of professionals: Simplified entry for business visitors, professionals and intra-company transferees, with 1,800 annual UK visas for Indian chefs, yoga instructors and artists.
- Investment and digital trade: The deal encourages UK investment in India's financial sector, strengthens fintech collaboration and improves digital trade rules.
- Simpler trade rules: Faster customs procedures, streamlined rules of origin and smoother supply chains reduce costs for businesses.
- Benefits for consumers: Wider product choice, lower prices and stronger digital trade protections in both countries.
Double Contribution Convention (DCC): At a Glance
- No dual social security payments for eligible workers on temporary overseas assignments.
- Pay into one system only – employees and employers will contribute only to their home country's social security scheme.
- Longer exemption period – coverage extended from 52 weeks to 60 months (5 years).
- Lower costs for businesses by eliminating duplicate social security contributions.
- Greater certainty for workers taking temporary assignments between India and the UK.
- Supports cross-border mobility by making it easier for companies to deploy skilled professionals.
- Expected savings: Indian companies and workers could save over ₹4,000 crore in social security contributions.
