India-UK CETA and Social Security Agreement Come Into Effect
UPSC / SSC current affairs note · Economy
Why in news
The India-UK Comprehensive Economic and Trade Agreement (CETA) and Agreement on Social Security officially came into effect on July 15, 2026. Prime Minister Modi hailed this as a 'significant moment' that will deepen economic cooperation and create new opportunities for businesses, workers, and farmers.
Background
India and the UK have been negotiating a free trade agreement for several years. The CETA is a comprehensive trade pact covering goods, services, and investment, while the social security agreement aims to protect the interests of Indian professionals working temporarily in the UK.
Key facts
The India-UK CETA and Agreement on Social Security came into effect on July 15, 2026.
PM Modi called it a 'significant moment' in bilateral ties.
The CETA provides zero-duty market access for nearly 99% of India's exports, covering almost 100% of total trade value.
Tariffs are removed on sectors including textiles, garments, leather, gems and jewellery, engineering goods, chemicals, electronics, marine products, furniture, and sports goods.
The social security agreement will support Indian professionals working temporarily in the UK and strengthen competitiveness of Indian enterprises.
Union Commerce Minister Piyush Goyal said the pact creates opportunities for labour-intensive industries, MSMEs, farmers, manufacturers, and the services sector.
Prelims pointers
- CETA: Comprehensive Economic and Trade Agreement between India and UK
- Agreement on Social Security between India and UK
- Zero-duty market access for 99% of India's exports
- Key sectors: textiles, garments, leather, gems & jewellery, engineering goods, chemicals, electronics, marine products, furniture, sports goods
Mains angles
- GS2: Bilateral groupings and agreements involving India; effect of policies and politics of developed countries on India's interests.
- GS3: Effects of liberalization on the economy; changes in industrial policy and their effects on industrial growth; trade and investment policy.