Prime Highlights
- The India-UK Free Trade Agreement gives all Indian exports duty-free access to the UK market, improving the competitiveness of Indian products.
- Eligible Indian professionals working in the UK for up to five years will receive social security relief under the Double Contribution Convention.
Key Facts
- The India-UK Free Trade Agreement covers trade in both goods and services, aiming to increase trade and economic cooperation between the two countries.
- The Double Contribution Convention allows eligible Indian professionals to continue contributing to India’s provident fund instead of the UK’s social security system during eligible assignments.
Background
The India-UK Free Trade Agreement (FTA) has come into force, giving Indian exporters duty-free access to the UK market and providing social security benefits to eligible Indian professionals working in Britain. The agreement aims to strengthen trade between the two countries while creating new opportunities for businesses, workers and several key sectors.
Union Commerce and Industry Minister Piyush Goyal said the agreement allows all products exported from India to enter the UK without import duty. He added that the move will make Indian goods more competitive in an important export market and support growth across industries. The trade pact covers both goods and services, and it opens up new business opportunities for Indian companies.
The agreement also includes a Double Contribution Convention (DCC). This arrangement exempts qualified Indian professionals from paying into the British social security system for a maximum of five years of employment in the UK. Goyal said professionals can instead contribute that amount to their provident fund accounts in India, where it will earn annual interest and remain tax-free, helping them build better retirement savings.
The minister said the agreement is expected to benefit exporters, farmers, fishermen, micro, small and medium enterprises (MSMEs), and domestic industries by improving access to the UK market. He added that it will also create more opportunities for Indian professionals and further strengthen economic ties between India and the UK.
Goyal also announced that he will lead a business delegation on a four-country visit across Europe in the second week of July. This meeting also includes taking part in the India-EU Trade and Technology Council meeting, where all the discussion will be related to technological collaboration and the status of the India-EU free trade agreement proposal.