"The India-UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security, have come into force, delivering, covering almost 100% of trade value," India's trade minister Piyush Goyal wrote on social media.
It also reduces 90% of tariffs on UK goods imported by India.
British Prime Minister Keir Starmer had called it "a new era for trade and the economy" while announcing the deal in 2025. Negotiations on the deal began in 2022.
Hours before the deal went live, India's Commerce Secretary Rajesh Agrawal said the agreement was a "gold standard" and one of the "most ambitious and aspirational free trade agreements" signed by New Delhi, as per The Hindu. ALSO READ: US proposes revised bill with 100% tariffs on India over Russian oil
What changes under the trade deal?The deal is expected to boost Indian exports to UK, make British imports cheaper, and streamline social security contributions for expats in both nations.
Here's what has come into effect:
- British products like cosmetics, medical devices, Scotch whisky, and English gin will be cheaper
- Lowered duties on Indian clothing, footwear and food products and spices exported to UK
- UK universities have approval to open new campuses in India
- Indians temporarily living in UK will continue social security continue social security contributions in India without contributing to schemes in UK. And vice versa.
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