India-UK Trade Deal Update: Modi government likely to sign trade pack with Britain in…, to get better access in UK market for THESE products

New Delhi: In a significant development, the trade agreement between India and the United Kingdom is likely to come into effect from April 2026. To recall, India and the United Kingdom had signed a Free Trade Agreement (FTA) last year. It is important to note that under this agreement, 99 percent of Indian exports will enter the British market duty-free. In return, India will reduce tariffs on British goods such as cars and whisky.

The deal aims to double bilateral trade between the two countries by 2030. At present, trade between India and the United Kingdom stands at approximately USD 56 billion. The agreement is being referred to as the Comprehensive Economic and Trade Agreement (CETA).

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Here are some of the key details:

This significant trade pact between India and the United Kingdom is currently undergoing the approval process in the British Parliament.
It has already been debated in the House of Commons and will also be discussed in the House of Lords.
In India, such agreements require approval from the Union Cabinet.
After receiving approval from the British Parliament, both countries will mutually decide on a date to implement the agreement.
Under this agreement, India will immediately reduce the 150 percent import duty on Scotch whisky to 75 percent
By 2035, the import duty on Scotch whisky will further come down to 40 percent.
Import duties on cars will be reduced from the current 110 percent to 10 percent over a period of five years.
In return, Indian exporters will receive better access to the United Kingdom market for products such as textiles, footwear, gems and jewellery, sports goods, and toys.
India will also lower tariffs on British consumer products like chocolates, biscuits, and cosmetics.

DCC Expected to Be Implemented Along with CETA

Both India and the United Kingdom have also signed a Double Contributions Convention (DCC). Notably, the DCC will prevent temporarily working employees from having to pay social security contributions in both countries. An official stated that both CETA and DCC are likely to come into force simultaneously.

British PM Expressed Desire for Early Implementation

British Prime Minister Keir Starmer had earlier expressed his intention to implement the agreement during his visit to India in 2025. He described it as the UK’s biggest trade achievement since Brexit. The agreement was signed in July 2025 during Prime Minister Narendra Modi’s visit to London. Economists estimate that the agreement could increase trade between the two countries by approximately £25.5 billion ($34 billion) by 2040.

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