Mumbai (Maharashtra) [India], July 12 (ANI): Union Commerce and Industry Minister Piyush Goyal on Sunday said the India-UK Free Trade Agreement (FTA) will come into effect on July 15, eliminating import duty on Indian goods entering the United Kingdom and bringing social security benefits for Indian professionals working there for up to five years.
“Only two days remain; today is the 12th. From the 15th, any goods exported from India to the United Kingdom will be welcomed there at zero import duty. This UK-India free trade deal brings new opportunities and immense possibilities for us all,” Goyal told reporters.
The minister also highlighted the implementation of the Double Contribution Convention Agreement from July 15, saying it would benefit Indian professionals temporarily working in the UK.
“Regarding our young men and women who go there to work–often for two, three, or five years… previously, about 25 per cent of their salary was effectively wasted; the local government would take it, and the worker received no benefit from it. Now, we have finalised a ‘Double Contribution Convention Agreement’ that will also come into effect on the 15th,” he said.
According to Goyal, Indians going to the UK for work for up to five years will no longer lose that contribution.
“For Indians going there to work in the services sector or other jobs for up to five years, the 25 per cent of their salary that was previously taken by the local government will now be deposited into their Provident Fund accounts in India. That money will belong to them; it earns 8.25 per cent tax-free interest and serves as a support for their old age, ensuring social security for their families,” he said.
Calling the agreement a major achievement, Goyal said it goes beyond merchandise trade.
“I believe it is a testament to Prime Minister Narendra Modi’s able leadership that the UK-India Free Trade Agreement not only addresses merchandise and goods and boosts the services sector, but also brings a significant gift for the thousands of people working and providing services there,” he said.
The India-UK Free Trade Agreement is aimed at expanding bilateral trade by reducing or eliminating tariffs on a wide range of goods while also improving market access for services. The agreement is expected to benefit key Indian export sectors such as textiles, apparel, engineering goods, gems and jewellery, marine products and auto components, while also strengthening economic ties between the two countries.
The accompanying Double Contribution Convention is designed to prevent Indian professionals on short-term assignments in the UK from making social security contributions in both countries, reducing their employment costs and improving their long-term retirement savings. (ANI)
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