Union Commerce and Industry Minister Piyush Goyal on Sunday said all Indian exports to the United Kingdom will become duty-free from July 15 under the India-UK Free Trade Agreement (FTA), benefiting sectors including agriculture, fisheries, MSMEs and manufacturing.
Speaking to reporters, Goyal said the agreement covers trade in goods and services and also includes a Double Contribution Convention (DCC), which exempts Indian professionals working in the UK for up to five years from contributing to the country's social security system.
"From July 15, any item exported from India to the UK will attract zero import duty," the minister said.
He said the DCC provision would reduce the financial burden on Indian professionals employed in Britain. According to Goyal, around 25 per cent of their salaries previously went towards the UK's social security contributions. Under the new arrangement, that amount will instead be deposited in their provident fund accounts in India, where it will earn 8.25 per cent annual interest and remain tax-free.
The minister said the agreement would create new opportunities for Indian professionals while strengthening economic and commercial ties between India and the UK. He also credited Prime Minister Narendra Modi's leadership for helping conclude the negotiations.
Goyal also announced that he will undertake a four-country overseas visit with a business delegation to strengthen India's trade and investment partnerships.
As part of the visit, he will attend the India-European Union Trade and Technology Council meeting in Brussels on July 14 and 15. The discussions will focus on resolving pending trade issues, enhancing technology cooperation, and advancing negotiations on the proposed India-EU Free Trade Agreement.
He said deeper technology cooperation with European countries would support India's long-term growth while strengthening economic ties with the region.