The India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security officially came into effect on Wednesday, marking a major step in strengthening economic ties between the two countries. Prime Minister Narendra Modi described the development as a "significant moment" and said the agreements would create new opportunities for businesses, farmers, professionals and workers in both nations.

The two agreements establish a new framework for trade and economic cooperation. They aim to increase market access, improve business opportunities and support the movement of skilled professionals. The agreements also focus on technology, innovation and investment, giving fresh momentum to the India-UK partnership.

Prime Minister Modi welcomed the implementation of the agreements through a post on X. He said they would deepen economic ties and deliver practical benefits to people in both countries.

"This is 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. The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs. Several vibrant sectors will gain stronger access to the UK market. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent," PM Modi said.

The Prime Minister also highlighted the importance of the social security agreement. He said it would support Indian professionals who work in the UK on temporary assignments and improve the competitiveness of Indian businesses operating overseas.

"The social security agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises. This moment reflects the trust between our democracies and our resolve to build a forward-looking partnership driven by trade, technology, investment and innovation. India and the UK will continue working together for shared prosperity," PM Modi added.

Union Commerce and Industry Minister Piyush Goyal also announced the implementation of the agreements through a social media post. He called the development a defining milestone in India-UK relations. He said the trade pact would provide zero-duty market access for nearly 99 per cent of India's exports and cover almost 100 per cent of the total trade value. He added that the agreement would open new opportunities for several industries, including labour-intensive sectors, small businesses and professional services.

"Today marks a defining milestone in India-UK ties. Under the dynamic leadership of Hon'ble PM @NarendraModi ji, the India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security have come into force, delivering zero-duty market access for nearly 99% of India's exports, covering almost 100% of trade value."

According to details shared by Goyal, the agreement removes tariffs on several labour-intensive sectors. These include textiles, clothing, leather, gems and jewellery, engineering goods, chemicals, electronics, marine products, furniture and sports goods. The removal of tariffs is expected to improve the competitiveness of Indian products in the UK market and create new export opportunities for domestic manufacturers.

The agriculture sector is also expected to gain from the agreement. India will receive zero-duty access for all agricultural products, except chicken, pork, eggs, rice and sugar. The agreement also offers duty-free access to 97.1 per cent of tariff lines for processed food products. This will help Indian exporters expand their presence in the UK's agricultural import market, which is valued at more than USD 90 billion.

Goyal said the agreement would benefit several sectors across the Indian economy. He said industries such as textiles, leather, engineering, marine products, chemicals and processed food would gain from improved access to the UK market. He also highlighted opportunities for MSMEs, farmers and manufacturers. The agreement is expected to support growth in IT, financial services, professional services, education and business services while creating more opportunities for skilled Indian professionals.

"The India-UK FTA creates unprecedented opportunities for our textiles, leather, gems & jewellery, engineering goods, marine products, chemicals, processed foods, MSMEs, farmers and manufacturers. It also opens new frontiers for our IT, professional, financial, education and business services sectors, while expanding mobility for Indian talent."

The Agreement on Social Security introduces important benefits for Indian professionals working in the UK on temporary assignments. Under the arrangement, eligible Indian workers and their employers will not have to contribute to the UK's National Insurance Contribution for up to five years. The government expects this provision to benefit more than 75,000 professionals and around 900 companies. The sectors likely to benefit include information technology, financial services, healthcare, education, telecommunications and consultancy.

The agreement also creates dedicated annual mobility quotas for 1,800 Indian chefs, yoga instructors and classical musicians across 137 sub-sectors. The measure is expected to provide more opportunities for skilled Indian professionals seeking employment in the UK.

Highlighting the workforce benefits, Goyal said, "The Agreement on Social Security further strengthens this partnership by exempting Indian professionals on temporary assignments from double social security contributions for up to 5 years, enhancing the global competitiveness of our workforce."

Goyal also thanked UK Secretary of State for Business and Trade Peter Kyle and the negotiating teams from both countries for completing the agreement. He praised their efforts in finalising the landmark pact and expressed confidence that it would strengthen the long-term partnership between India and the United Kingdom.

"I thank my friend and counterpart @PeterKyle, and both negotiating teams, for their commitment in bringing this transformational agreement to fruition. Together, we remain committed to building a resilient, innovation-driven partnership that will drive growth, investment and shared prosperity for generations to come."