In his announcement on Sunday, July 12, Union Commerce and Industry Minister Piyush Goyal highlighted that the agreement aims to support exporters, farmers, fishermen, MSMEs, and professionals, while reinforcing trade and economic relations between India and the UK.
Duty-free access for all Indian exports
Goyal stated to reporters that starting July 15, all products shipped from India to the UK will incur zero import duties, enhancing the competitiveness of Indian goods in a key export market.
The agreement encompasses both goods and services, expected to generate new opportunities for Indian enterprises across various sectors.
Social security relief for Indian professionals
The trade deal introduces a Double Contribution Convention (DCC), which exempts eligible Indian professionals working in the UK for up to five years from mandatory contributions to the British social security system.
Previously, Indian professionals had to contribute approximately 25% of their earnings to the UK’s social security.
Under the new arrangement, this amount can be redirected to their provident fund accounts in India, earning an annual interest of 8.25% and remaining tax-exempt, thus bolstering their retirement savings.
Benefits for farmers, MSMEs, and industry
Goyal noted that the agreement is poised to benefit a diverse array of sectors, including farmers, fishermen, MSMEs, and domestic industries, by enhancing access to the UK market.
He further mentioned that the deal would open up more avenues for Indian professionals while solidifying the economic relationship between the two nations.
Goyal to visit Europe for trade discussions
The commerce minister also revealed plans for a four-country trip with a business delegation to strengthen India’s trade alliances.
During this visit, he will join the India-European Union Trade and Technology Council meeting in Brussels on July 14 and 15.
Goyal indicated that discussions will center around resolving outstanding issues, boosting technology collaboration, and progressing negotiations on the proposed India-EU Free Trade Agreement, emphasizing that enhanced technology partnerships with European nations will support India’s long-term economic advancement.
Also Read: Cheaper scotch, more choices? How the India-UK FTA could change liquor shelves
