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16 July 2026

India-U.K. Comprehensive Economic and Trade Agreement (CETA)

The India-U.K. CETA is a major bilateral trade agreement that directly impacts India's economic policy, export sectors, and labor mobility, making it a high-probability topic for UPSC Mains questions.

1 min read Day 6 of 14 2 questions 2 prelims

Notes

  • The India-U.K. Comprehensive Economic and Trade Agreement (CETA) aims to boost trade, technology cooperation, professional services, and innovation.
  • CETA provides duty-free access for 99% of Indian exports, with significant benefits for the textile sector in regions like Tiruppur and Surat.
  • The agreement facilitates greater mobility for skilled Indian talent and opens new frontiers for IT, financial, education, and healthcare services.
  • The Double Contribution Convention (DCC) allows temporary workers to be exempt from social security contributions in the host country for up to 60 months.
  • The DCC is not retrospective; it applies only to individuals arriving on or after July 15, and requires a 'certificate of coverage' from the EPFO.
  • Bilateral trade between India and the U.K. reached £48 billion in 2026.
  • National Insurance (NI) contributions in the U.K. typically involve up to 8% of gross salary for employees and 15% for employers.

Part of a longer story

This is day 6 of 14 in India-UK Comprehensive Economic and Trade Agreement (CETA) implementation, which has been running since 21 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the potential impact of the India-U.K. Comprehensive Economic and Trade Agreement (CETA) on the competitiveness of India's MSME sector and textile exports. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Discuss the significance of the Double Contribution Convention (DCC) in the context of labor mobility and social security for Indian professionals working abroad. How do such bilateral agreements influence the global competitiveness of the Indian services sector? 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Under the India-U.K. Double Contribution Convention (DCC), what is the maximum duration for which temporary workers are exempt from paying social security contributions in the host country?

  2. Which organization is responsible for issuing the 'certificate of coverage' required for Indian workers to claim social security exemption in the U.K. under the new DCC?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-16/india-u-k-comprehensive-economic-and-trade-agreement-ceta