According to a government official, the India-UK free trade deal, which was inked last year, is anticipated to take effect in April 2026, giving Indian exporters optimism for a significant increase in bilateral trade and market access.
On July 24, 2025, India and the UK signed the Comprehensive Economic and Trade Agreement (CETA). 99 percent of Indian exports will enter the British market duty-free under the agreement.
In exchange, India will lower tariffs on a number of British products, such as automobiles and Scotch whiskey. “We anticipate the agreement to take into effect starting in April of this year,” the government official told news agency PTI.
In addition to CETA, the two nations recently signed the Double Contributions Convention (DCC), which will guarantee that temporary employees will not have to pay social security taxes in either country.
A simultaneous implementation of both agreements is expected, the official said.
Prior to its implementation, the agreement needs the UK Parliament’s approval. In India, the Union Cabinet approves these trade agreements.
Earlier this week, the UK’s House of Commons debated the India-UK CETA. The deal is a major milestone, according to Chris Bryant, Minister of State in the Department for Business and Trade, who said it goes “far beyond India’s precedence in opening the door for UK enterprises.”
In addition to committee-level reviews and discussions in both the House of Commons and the House of Lords, the British Parliament is presently ratifying the agreement. Once the approval procedure is finished, the agreement will be put into effect on a date that has been agreed upon by both parties.
By 2030, CETA seeks to quadruple the $56 billion in present commerce between India and the UK.
India has allowed a variety of British consumer items, such as chocolates, biscuits, and cosmetics, to enter its market. In return, Indian exporters should have better access to the UK market for commodities including toys, sports goods, textiles, footwear, and jewels and jewelry.
The deal calls for a reduction in Scotch whisky tariffs from 150 percent to 75 percent immediately, with a further reduction to 40 percent by 2035.
Under a quota-based approach, India would progressively reduce import taxes on cars from up to 110% to 10% over a period of five years. In exchange, under a quota system, Indian automakers will have access to the UK market for electric and hybrid cars.
The deal is anticipated to change trade flows once it takes effect and represents a major step in fortifying economic connections between the fifth and sixth largest economies in the world.
