• Source:JND
HighLights
  1. 98% Indian goods to UK now duty-free.
  2. British products like cars, alcohol cheaper in India.
  3. 75,000 Indian employees save 23% on social security.

Jagran Bureau, New Delhi | The Comprehensive Economic Trade Agreement (CETA) with another developed country, Britain, is set to come into effect on Wednesday (July 15), which means 98 per cent of Indian goods exporting to Britain will be duty-free.

The CETA will make Indian goods cheaper in the British market and boost their exports. Along with goods stuck on their way to Britain, all goods that have not yet cleared customs at British ports will also benefit from CETA.

How CETA Will Benefit India

Britain imports various goods worth USD 949 billion annually, and India's share of this is only USD 13.44 billion. Therefore, the trade agreement offers India a significant opportunity to increase its exports to the British market. CETA also includes the service sector. Britain imports services worth USD 399 billion annually, and India's share of this is USD 21.66 billion.

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Advantage For 75,000 Indian Employees In Britain

Starting July 15, 75,000 employees working for Indian companies in Britain will no longer have to pay a significant portion of their salary for social security. This will increase their salaries by approximately 23 per cent. Currently, employees working for Indian companies in Britain are required to contribute approximately 23 per cent of their salary to a British government fund for social security, which they cannot reclaim if they work in Britain for less than 10 years.

ALSO READ: India-UK FTA To Come Into Force From July 15: Key Impacts For Businesses And Consumers | Explained

These Products Will Be Cheaper In India

CETA will provide both India and Britain with the opportunity to sell their goods in India at lower tariffs. British products, particularly automobiles, alcohol, chocolates, silver, cosmetics, and medical equipment, will now become cheaper in the Indian market. According to the agreement, British electric cars will be allowed to be sold in the Indian market at lower tariffs after five years.

What was the duty on which goods in Britain before CETA, British imports and Indian exports?

uk india deal

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