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Hans India
a day ago
- Business
- Hans India
India-UK FTA goes beyond goods in big boost to services exports
The India-UK Comprehensive Economic and Trade Agreement (CETA) goes beyond goods and addresses services exports, which are a core strength of India's economy. Currently, India's services exports to the UK are a robust $19.8 billion, and CETA promises to expand this further with increased mobility for professionals across IT, healthcare, finance, and education. CETA is providing for streamlined entry for contractual service suppliers, business visitors, intra-corporate transferees, and independent professionals (e.g., yoga instructors, chefs, and musicians). Another major breakthrough is the Double Contribution Convention, which exempts Indian workers and their employers from paying UK social security contributions for up to three years when on temporary assignments. Around 75,000 workers and over 900 companies are expected to benefit, resulting in savings of more than Rs 4,000 crore. The free trade agreement includes a wide-ranging package covering Information Technology, IT-enabled services, financial and professional services, business consulting, education, telecom, architecture, and engineering that will unlock high-value opportunities and job creation. Services are a core strength of India's economy, and the agreement provides deeper market access across IT, financial services, education, and healthcare. It also creates a structured framework for the temporary movement of professionals. Business visitors, contractual service suppliers, and independent professionals can now access the UK under clear and predictable entry rules. Additionally, up to 1,800 Indian chefs, yoga instructors, and classical musicians can work in the UK every year under these provisions. The agreement also simplifies compliance by allowing exporters to self-certify the origin of products, reducing time and paperwork. UK importers can also rely on importers' knowledge for certification, further easing trade. For small consignments under 1,000 pounds, there is no requirement for origin documentation, which supports e-commerce and small businesses. Product Specific Rules of Origin (PSRs) align with India's current supply chains for key sectors such as textiles, machinery, pharmaceuticals, and processed food. Bilateral trade between Indian and the UK has already reached $56 billion, and the free trade agreement aims to double this by 2030. Commerce and Industry Minister Piyush Goyal said: "The India–UK Comprehensive Economic and Trade Agreement (CETA) is designed to open new avenues for trade and investment, while protecting India's core economic interests. It combines tariff reduction, simpler rules for trade, strong provisions for services, and measures that make professional mobility easier." This FTA will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India's core interests and accelerating our journey towards becoming a global economic powerhouse, he added. CETA provides an unprecedented duty-free access to 99 per cent of India's exports to the UK, covering nearly 100 per cent of the trade value. This includes labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys, as well as high-growth sectors like engineering goods, chemicals, and auto components. This will spur large-scale employment generation, empowering artisans, women-led enterprises, and MSMEs. India has opened 89.5 per cent of its tariff lines, covering 91 per cent of the UK's exports, safeguarding sensitive sectors and strategically important products where domestic capability is being built. Elimination of duties will make a range of imported products more affordable for consumers, offering greater variety and quality at competitive prices.
Canada News.Net
3 days ago
- Business
- Canada News.Net
Uttarakhand's Basmati rice to gain new identity on global stage with India-UK FTA: CM Pushkar Singh Dhami
Dehradun (Uttarakhand) [India], July 25 (ANI): The recently signed Free Trade Agreement (FTA) between India and the United Kingdom will give a new identity to Uttarakhand's basmati rice on the global stage, Chief Minister Pushkar Singh Dhami said on Friday. Hailing the mutually beneficial trade deal, the CM said that it is a step towards realising Prime Minister Narendra Modi's mantra of 'Vocal for Local,' by taking such products to the global stage. 'Uttarakhand's Basmati rice will gain a new identity on the global stage! Under the visionary leadership of Prime Minister Narendra Modi, India is setting new benchmarks in international trade. With the Free Trade Agreement between India and the UK, the state's Basmati rice will gain a new identity and better prices in international markets, which will also boost the income of the state's farmers,' Dhami posted on X. 'This initiative is a significant step towards realising the Prime Minister's mantra of 'Vocal for Local' by taking local products to the global stage,' he added. Earlier on Thursday, Prime Minister Narendra Modi stated that both countries have ushered in a new era of economic cooperation with the signing of the FTA, along with the Double Contribution Convention, during his tete-a-tete with UK Prime Minister Keir Starmer. The Prime Minister also emphasised the agreement's potential to boost trade, investment, and skilled mobility for future generations of the two nations. 'Together, we are laying the foundation stone of a new history. We are meeting for the third time this year. I consider this very significant. The UK and India are natural partners. Today marks a historic day in our relations. This will pave a very strong path for the future generations of India and the UK. This is adding a new chapter in business and trade,' PM Modi said. The long-awaited India-UK Free Trade Agreement was signed in the presence of both leaders. The agreement aims to boost the movement of goods and services between the two countries. PM Modi is currently on a two-day official visit to the UK. The landmark deal unlocks export opportunities for labour-intensive sectors, including textiles, leather, footwear, gems and jewellery, marine products, and toys, generating large-scale employment and empowering artisans, women-led enterprises, and MSMEs, a statement from the Ministry of Commerce and Industry stated. According to the release, the deal will provide unprecedented market access for Indian goods, offering zero-duty access on 99 per cent of tariff lines, covering nearly 100 per cent of the trade value. (ANI)
India Today
3 days ago
- Business
- India Today
India-UK trade deal: How DCC agreement could open doors for Indian workers
India and the United Kingdom signed a major Free Trade Agreement (FTA) on Thursday, aiming to boost economic ties and double their bilateral trade to USD 112 billion by of the key parts of the deal is the introduction of the Double Contribution Convention (DCC), which is expected to help Indian professionals working in the UK by reducing their social security trade deal, known officially as the India-UK Comprehensive Economic and Trade Agreement (CETA), was signed in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer. The agreement was signed by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan FTA is one of the most important trade deals India has signed with a developed country in recent times. It gives 99% of Indian exports to the UK duty-free access, helping key sectors such as textiles, leather, marine products, engineering goods, chemicals, footwear, toys, sports goods, and gems and jewellery.'It will promote ease of doing business, reduce cost of doing business, and increase the confidence of doing business. Additionally, UK's economy would benefit from India's skilled talent," said PM Modi."These agreements will enhance investments and generate new employment opportunities in both countries. Moreover, as agreements reached between two democracies and two of the world's major economies, they will lend support to global stability and global prosperity,' he IS THE DCC AND WHY IT MATTERSOne of the most important parts of the agreement is the Double Contribution Convention (DCC), which will directly benefit Indian workers and professionals going to the normal circumstances, Indian employees working in the UK and their employers have to pay into the UK's social security system. This increases the cost for companies hiring Indian talent and also reduces take-home pay for the the DCC in place, Indian workers and their employers will be exempt from making social security payments in the UK for up to three years. This makes Indian professionals more cost-effective for British companies and ensures that workers don't lose a part of their salary to contributions that they may not benefit from in the long to the Commerce Ministry, this change will increase the competitiveness of Indian workers in the UK and could lead to more job opportunities for them in fields like IT, engineering, finance, and IT HELPS MOBILITY AND SERVICES TRADEadvertisementThe agreement also includes provisions to make it easier for Indian professionals to work and do business in the will be simpler processes for contractual service providers, independent professionals, and business visitors. This is expected to benefit people working in sectors like software services, design, healthcare, and financial trade agreement is expected to make global markets more accessible to India's micro, small and medium enterprises (MSMEs). Startups, women entrepreneurs, farmers, artisans, and even fishermen will be able to benefit from reduced trade barriers and new business opportunities in the countries have agreed to provisions that support sustainable development, remove non-tariff barriers, and encourage deal aims to create a more balanced and strong economic relationship between India and the UK. The current bilateral trade stands at around USD 56 billion, and both countries hope to double it by the end of this Minister Piyush Goyal said that the FTA will benefit everyone from farmers to factory workers and software developers. 'This FTA marks a milestone in the trade relations between two major economies. It unlocks tariff-free access on 99% of Indian exports to the UK and helps the Make in India vision,' he said.- EndsTune InMust Watch
Hindustan Times
3 days ago
- Business
- Hindustan Times
India secures freer access to UK market in landmark deal
Indian professionals will gain freer access to the UK and British exporters secure easier entry to India's vast market through dramatic tariff cuts under a comprehensive trade deal signed between Prime Minister Narendra Modi and his UK counterpart Keir Starmer on Thursday, hailed by both as a landmark partnership for shared prosperity. Jonathan Reynolds, UK business and trade secretary, Narendra Modi, India's prime minister, Keir Starmer, UK prime minister, and Piyush Goyal, India's commerce and industry secretary, left to right, during a news conference after signing a free trade agreement at Chequers near Aylesbury, UK, on Thursday. (Bloomberg) The pact will boost two-way commerce by $35 billion in the long run and the two sides also unveiled plans to negotiate a Double Contribution Convention (DCC) that exempts employers of Indian workers from paying social security contributions in the UK for three years in what is expected to particularly help finance and technology sector workers. They will also work on a Defence Industrial Roadmap for closer cooperation on military hardware. The DCC will come into force alongside the trade deal. In London, Modi described the deal as 'not just an economic partnership, but a plan for shared prosperity' that will benefit India's youth, farmers, fishermen and MSME sector. Starmer said the agreement is the 'biggest and most economically significant trade deal' concluded by the UK since leaving the European Union (EU) in 2020 and also 'one of the most comprehensive deals' by India. India and Britain finalised the Comprehensive Economic and Trade Agreement in May after more than three years of negotiations, and the pact was signed by commerce minister Piyush Goyal and his UK counterpart Jonathan Reynolds during Modi's visit to Britain. With the economic turmoil unleashed by US President Donald Trump's tariffs as the backdrop, both sides overcame long-standing differences on issues such as levies on British alcohol and automobiles, which are set to drop. Duties on British whisky imports drop from 150% to 75% immediately, falling to 40% over 10 years. UK automotive exports will see tariffs reduced from up to 110% to 10% under quota arrangements. The gains for both sides, however, are much broader with the UK eliminating tariffs on 99% of Indian exports (up from roughly 65% that previously enjoyed zero or near-zero duties). Speaking at a media interaction with Starmer, Modi said: 'On the one hand, Indian textiles, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK. New opportunities will be created in the UK market for India's agricultural produce and processed food industry.' He added, 'On the other hand, products made in the UK, such as medical devices and aerospace parts, will be available to the people and industry of India at accessible and affordable rates.' The DCC, Modi said, will give new energy to the services sectors of both sides by boosting the ease of doing business. 'Along with this, the UK economy will get Indian skilled talent,' he said. He added that the deal between two democratic countries and major economies will strengthen global stability and prosperity. Starmer said that apart from benefiting whisky distillers in Scotland and the services sector in London, Manchester and Leeds, the deal will bring down prices on Indian goods such as clothes, shoes and food. 'It will add about £4.8 billion to the UK economy every year and £2.2 billion to wages and hundreds of millions of pounds to regions and nations up and down the UK,' he added. The India-UK Vision 2035, aimed at renewing the bilateral comprehensive strategic partnership, will serve as a roadmap for a reliable partnership in technology, defence, climate, education and people-to-people connect, Modi said. The two sides will also work to strengthen their Technology Security Initiative, launched a year ago to drive cooperation in telecom, critical minerals, IA, semiconductors, quantum computing and biotech. Key beneficiaries of the deal announced on Thursday include India's textiles and clothing sector, where complete tariff elimination from the current 12% level will enhance competitiveness against Bangladesh and Vietnam. Processed food exporters will see duties fall from as high as 70% to zero on 99.7% of tariff lines, while marine products will enjoy zero duties down from 20%. In the services sector, Indian service providers are expected to benefit from opportunities in the UK, especially in management consultancy, computer-related services and education services. The deal also eases mobility for Indian professionals, including contractual service suppliers working on projects in the UK, yoga instructors and chefs. 'Along with this, the UK economy will get Indian skilled talent,' Modi added. The inclusion of a first-of-its-kind trade and gender chapter in the trade deal is aimed at empowering Indian women and ensuring gender inclusion, with targeted support for women-led enterprises and workers. The FTA excludes India's most sensitive agricultural segments, with no tariff concessions on dairy products, apples, oats and edible oils. These exclusions, the officials said, reflect India's calibrated trade strategy that prioritises food security, domestic price stability and protection of vulnerable farmers. The deal's sanitary and phytosanitary (SPS) measures will help Indian exporters meet British standards and reduce rejections, the officials said. In return, India has reduced average tariffs on UK exports from 15% to 3%. 'Products made in the UK, such as medical devices and aerospace parts, will be available to the people and industry of India at accessible and affordable rates,' Modi said. India-UK trade in goods and services was worth $57.8 billion in 2024, an increase of 8.3% from 2023, with India ranking as Britain's 11th largest trading partner. India's imports from the UK amounted to £17.1 billion while exports to the UK were worth £25.5 billion. Total bilateral trade in goods was worth £17.8 billion, while services trade amounted to £24.8 billion, with India accounting for 2.4% of the UK's total trade. The deal is projected to see India's agricultural exports rise by 20% in the next three years. Officials said the benefits for Indian farmers in UK markets will match or exceed those enjoyed by exporters from Germany, the Netherlands and other EU members. 'This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access and foster investment,' said Sunil Bharti Mittal, chairman of Bharti Enterprises and co-chair of the India-UK CEO Forum, who led a 16-member Indian business delegation.
Hindustan Times
3 days ago
- Business
- Hindustan Times
Trade deal: UK to ease key rules for Indian workers
India secured significant business mobility concessions for its professionals in the free trade agreement formalised with the United Kingdom on Thursday, overcoming years of British reluctance on immigration-sensitive issues. Prime Minister Narendra Modi and British counterpart Keir Starmer in the UK on Thursday. (ANI)(ANI) The breakthrough came after protracted negotiations that began in January 2022 but stalled due to political uncertainty in the UK and mutual sensitivities over market access. 'The UK was unwilling to grant business mobility because of political sensitivities involved with immigration in general. On the other hand, India was guarding its automobile and agri-food market with up to 110% and 150% (whisky) tariffs, respectively,' an official familiar with the talks said, asking not to be named. Under the final agreement, an 'innovative' Double Contribution Convention (DCC) exempts Indian workers and their employers from UK social security contributions for three years, boosting competitiveness and earnings -- a significant cost-saving measure for Indian IT and financial services companies sending employees to Britain on work visas. The mobility provisions cover professionals in IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade, with 'simplified visa procedures and liberalised entry categories, making it easier for talent to work in the UK,' the commerce ministry said in a statement. However, the UK has imposed a quota of 1,800 per year for qualified Indian traditional chefs, yoga instructors and classical musicians entering as contractual service suppliers, with temporary entry and stay permissible up to 12 months in any 24-month period. In turn, India has also opened key segments of its services economy to British firms, granting access in sectors such as accounting, auditing, financial services (with FDI in insurance capped at 74%), telecom (allowing 100% FDI), environmental services, and auxiliary air transport. While India has made commitments on market access across 108 sub sectors in services, the UK has made commitments across 137 sub sectors, practically covering more than 99% of India's exports. All key areas of India's interest such as IT, business services such as management consulting, accounting, engineering, telecom, financial services, education and health are covered. Experts said the inclusion of a business mobility chapter in the agreement is beneficial, but pointed to the quotas. 'Overall, the UK's services package shows reluctance to ease mobility for Indian professionals -- one of India's core demands,' said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI). 'India granted full market access in telecom, financial, and professional services, but the UK offered minimal concessions on mobility, visas, and mutual recognition.' 'The UK has offered an annual quota of 1,800 visas for niche roles like yoga instructors and classical musicians, but it has not made binding commitments on broader visa categories, including business visitors or IT professionals. The UK's refusal to restore post-study work visas is a disappointment for Indian students, and the FTA does not override the UK's points-based immigration system — meaning Indian professionals must still meet regular education, salary, and job offer thresholds,' he said. HT graphics(HT) The deal required significant concessions from India, which reduced tariffs on British automobiles to 10% with quota arrangements, and whisky tariffs to 75% from enforcement, falling further to 40% over 10 years. However, 'India protected sensitive agricultural sectors by placing 'dairy items, vegetables, apples, edible oils, oats' on the negative list,' an official said. 'Now that we have concluded negotiations, the UK and India will work together to finalise the legal text of the free trade agreement and produce a usable and legally binding treaty. We will end this process by signing the completed treaty text,' the UK summary document stated. For India's agricultural exporters, the deal opens new opportunities for 'turmeric, cardamom, pepper, mango pulp, pickles, and pulses' which will now enjoy duty-free access to the UK, enhancing farmers' market reach and profitability,' said Federation of Indian Export Organisations (Fieo) president SC Ralhan. 'The UK–India DCC is a significant milestone for businesses across sectors with cross-border talent needs. By exempting Indian employees on short-term assignments to the UK from UK social security contributions for up to 36 months, it removes a major cost and compliance barrier,' said Puneet Gupta, partner at EY India. 'Employees can continue contributing to their home country's system, preserving social security continuity.' The agreement also opens doors beyond traditional sectors. 'The cosmetics sector will see a boost, particularly with the harmonisation of standards enabling smoother market access. This also opens doors for Ayurvedic and natural ingredient-based products both from India to the UK and vice versa,' said Anand Ramanathan, partner at Deloitte India. Union Commerce Minister Piyush Goyal called it a 'landmark' deal that 'will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India's core interests and accelerating our journey towards becoming a global economic powerhouse.' For the UK alcoholic beverages sector, 'the biggest beneficiary will be UK-based Scotch brands, with high import tariffs seeing a sharp reduction. Given India's evolved whisky-drinking market, this will encourage both established players and new entrants to expand their global portfolio offerings here,' Ramanathan added. The partners aim to double bilateral trade to $112 billion by 2030 from current levels of $56 billion, with the deal securing duty-free access for 99% of India's exports while India removes or reduces tariffs on 90% of tariff lines covering 92% of existing UK goods imports.
