India-UK CETA: July 15 Start, Social Security Relief for IT Firms

India and the UK will bring the Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention (DCC) into force on July 15, 2026, Commerce Minister Piyush Goyal said after meeting UK Secretary of State Peter Kyle in London.

The DCC is the more concrete near-term mechanism for Indian companies. It eliminates double social security contributions for employees on temporary assignments. Under the agreement, workers posted to the UK can continue paying social security in their home country for up to 60 months, up from a 52-week exemption period previously.

For Indian technology and professional services firms that second employees to the UK, the change cuts compliance costs and simplifies payroll. Indian IT services companies with large UK client bases would see a direct benefit on assignment costs. The pharmaceutical and engineering sectors, which also send staff for short-term projects, would similarly benefit.

The CETA itself is broader. It aims to expand market access for goods and services, though the full tariff schedules have not been published. Goyal said the agreement would promote innovation and investment for both nations. The agreement covers bilateral trade, market access, and cooperation across goods and services.

The July 15 start date gives companies two months to adjust payroll and compliance systems. The DCC in particular removes a cost that many firms had flagged as a barrier to cross-border assignments.