India and UK Sign Comprehensive Economic and Trade Agreement
Why focus: GS3 Economy — major FTA eliminating 99% tariffs. Expect Assertion-Reason format testing tariff reduction specifics vs automotive sector rules.
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: Indian labor-intensive exports like textiles and leather faced restrictive tariffs in the UK market. NOW: Tariffs are eliminated on 99 percent of Indian exports to the UK, enhancing export competitiveness.
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BEFORE: British automobiles and spirits (like Scotch whisky) faced exorbitant Indian import duties, sometimes exceeding 150 percent. NOW: Indian import duties on these specific British goods are significantly reduced to allow greater market access.
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BEFORE: Indian IT professionals working temporarily in the UK paid social security contributions without reaping the benefits upon returning home. NOW: A Double Contributions Convention (DCC) is incorporated to prevent dual social security taxation and protect workers' financial interests.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)Consider the following statements regarding the India-UK Comprehensive Economic and Trade Agreement (CETA) signed in 2025: 1. The agreement eliminates tariffs on 99 percent of India's exports to the United Kingdom. 2. It includes a Double Contributions Convention (DCC) to exempt temporary Indian workers in the UK from dual social security taxes. Which of the statements given above is/are correct?