India-UK
CETA
Prelims:
Economy, International
Relations
Mains:
GS Paper II – Bilateral
Relations, GS Paper III – Economy
Current
relevance:
The India–UK Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security (Double Contribution Convention
– DCC) entered into force on July 2026.
Highlights:
1. The Comprehensive Economic and Trade Agreement (CETA) is a Free
Trade Agreement (FTA) between India and the United Kingdom.
2. Aim: To promote trade in goods and
services, investment, market access, and economic cooperation between the two
countries.
3. The Agreement grants zero-duty access to nearly 99% of India's
exports, accounting for almost 100% of bilateral trade value with
the UK.
4. The implementation of India–UK CETA commenced with the dispatch of
over 50 export consignments worth more than USD 140 million from
over 20 ports, airports, ICDs, SEZs, and factories across India.
5. The first Certificates of Origin (CoO) were issued through the eCoO
2.0 platform on a self-certification basis, reducing compliance
costs and facilitating easier trade.
About Double Contribution Convention
(DCC):
i.
It is a bilateral social
security agreement that exempts employees on temporary overseas
assignments from making social security contributions in both their home
and host countries, thereby preventing double contributions.
ii.
The exemption is available
for up to five years.
iii. Enhances the global competitiveness of India's skilled workforce by reducing employment costs for Indian professionals working temporarily in the United Kingdom.
Source: PIB - https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2285085®=48&lang=1