India-UK Free Trade Agreement Expected to Start in April 2026
The free trade agreement between India and the UK, signed in July last year, is likely to take effect in April 2026. According to a government official, both nations are working toward this timeline to boost economic ties.
Key Details of the Trade Deal (CETA)
On July 24, 2025, India and the UK signed the Comprehensive Economic and Trade Agreement (CETA). Under this landmark deal:
- 99% of Indian exports will enter the British market with zero customs duties.
- India will reduce tariffs on British products, including cars and whisky.
“We are expecting the pact to be implemented from April this year,” the official stated.
New Rules for Workers and Social Levies
Alongside the trade deal, the two countries signed the Double Contributions Convention (DCC). This pact ensures that temporary workers do not have to pay double social security taxes in both countries. Both agreements are expected to launch at the same time.
The Approval Process
Before the deal starts, it must pass through official channels in both nations:
- In the UK: The British Parliament must approve the pact. The House of Commons recently held a debate on CETA, where Trade Minister Chris Bryant called the deal a “momentous achievement” for UK businesses.
- In India: The Union Cabinet is responsible for approving such international agreements.
Once the British Parliament finishes its review and ratification, both countries will agree on a final launch date.
Economic Impact and Growth
CETA aims to double the $56 billion trade between the world’s fifth and sixth largest economies by 2030.
Benefits for India: India will gain better access to the UK market for:
- Textiles and footwear
- Gems, jewelry, and sports goods
- Toys and various consumer products
Benefits for the UK: The UK will see significant tariff cuts on exports to India:
- Scotch Whisky: Duties will drop immediately from 150% to 75%, and eventually to 40% by 2035.
- Automobiles: India will lower import duties from 110% to 10% over five years under a specific quota system. In return, Indian manufacturers will gain better access to the UK for electric and hybrid vehicles.
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