The India-UK Free Trade Agreement is expected to come into force from the second week of May, according to an official familiar with the development.
Signed on July 24, 2025, the agreement, also referred to as the Comprehensive Economic and Trade Agreement (CETA), will allow 99 per cent of Indian exports to enter the UK market duty-free. In return, India will gradually reduce tariffs on a range of British goods, including cars and Scotch whisky.
Officials indicated that the deal will be implemented alongside the Double Contributions Convention, which ensures that temporary workers are not required to pay social security contributions in both countries simultaneously.
The agreement aims to double bilateral trade, currently valued at $56 billion, by 2030. While India is opening its market to consumer goods such as chocolates, biscuits and cosmetics, it stands to benefit from expanded export opportunities in sectors including textiles, footwear, gems and jewellery, sports goods and toys.
Under the terms of the pact, tariffs on Scotch whisky will be cut from 150 per cent to 75 per cent immediately, with a further reduction to 40 per cent by 2035. Import duties on automobiles will also be lowered from as high as 110 per cent to 10 per cent over five years, under a phased quota system.
In exchange, Indian manufacturers will gain access to the UK market for electric and hybrid vehicles within a quota framework, marking a significant step in deepening trade ties between the two economies.
