India-UK Free Trade Agreement Takes Effect 15 July: Zero Duty On All Indian Exports

The India-UK Free Trade Agreement will come into force on 15 July 2026, giving every Indian export zero-duty access to the British market and exempting eligible Indian professionals working in the UK from contributing to the country's social security system for up to five years.

Union Commerce and Industry Minister Piyush Goyal announced the rollout on Sunday, saying the agreement covers trade in goods and services and introduces a Double Contribution Convention (DCC) that directly benefits Indian workers employed in Britain.

What Changes From 15 July

From 15 July, all Indian exports to the UK will attract zero import duty under the trade agreement.

Indian professionals working in the UK for up to five years will also be exempt from paying UK social security contributions, which previously amounted to nearly 25% of their salary.

Instead of contributing to the UK social security system, these savings can remain in their provident fund accounts in India, where they currently earn 8.25% annual tax-free interest.

The Social Security Provision In Detail

The DCC is one of the more practically significant elements of the deal for the large community of Indian professionals working in the United Kingdom. Previously, Indian workers on temporary assignments in the UK were required to contribute roughly a quarter of their salary to the British social security system, with limited ability to recover those contributions upon returning to India.

Under the new arrangement, those funds stay in India through the provident fund system, earn a guaranteed annual return and remain entirely tax-free, strengthening long-term retirement savings for workers who would otherwise have seen that money go into a foreign system.

Broader Trade Impact

Goyal said the agreement is expected to create new market access opportunities for Indian farmers, fishermen, small and medium enterprises and domestic manufacturers. The deal is seen as one of India's most significant bilateral trade agreements in recent years and is expected to meaningfully improve the competitiveness of Indian goods in the British market.

Goyal's Upcoming Europe Trip

Goyal is also travelling to Europe with a business delegation, with a stop at the India-European Union Trade and Technology Council meeting in Brussels on 14 and 15 July. Discussions there will focus on resolving pending trade disputes, expanding technology cooperation and advancing negotiations on the proposed India-EU Free Trade Agreement.

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