The India-UK Free Trade Agreement signed between India and Britain in July last year is likely to come into force from April 2026. A government official said that both sides are hoping to make the agreement effective from April this year. Under this agreement signed on July 24, 2025, 99 percent of India’s export products will be able to enter the British market at zero duty. At the same time, import duty on British products like cars and whiskey will be reduced in India.
Approval of the British Parliament is necessary before the agreement comes into force.
The official said India and Britain have also signed the Double Contribution Convention agreement, due to which temporary workers will not have to pay social contributions again in either country. There is a possibility that both the agreements may be implemented simultaneously. The approval of the British Parliament is necessary before the agreement comes into force. In India, such international agreements get the approval of the Union Cabinet. After the approval of the British Parliament, the date of implementation will be decided by mutual consent.
India-UK CETA was discussed in the House of Commons, the lower house of the British Parliament, earlier this week. Chris Bryant, Minister of State at the Department of Trade and Industry, replying on behalf of the Labor Government, said that this agreement is a major achievement and will open the doors of the Indian market to British businesses more than ever before.
Under the parliamentary procedure, the agreement will be debated in both the houses – House of Commons and House of Lords and the relevant committees will review all its aspects. The agreement aims to double trade between India and Britain, the world’s fifth and sixth largest economies, to $56 billion by 2030.
These British products will come to India
Under the agreement, India has opened up its market for consumer products such as chocolates, biscuits and cosmetics, while India will get greater access to the UK for export products such as textiles, footwear, gems and jewellery, sporting goods and toys.
Import duty on Scotch whiskey will be reduced from 150 percent to 75 percent immediately and is targeted to be reduced to 40 percent by 2035. India will reduce import duty in the automobile sector from 110 percent to 10 percent in a phased manner in five years. In return, Indian automakers will get access to the UK market for electric and hybrid vehicles under a fixed quota system.
