Media365
India and the United Kingdom announced that their landmark free trade agreement will come into force on July 15, less than a year after it was signed, in what London described as the fastest implementation of a trade deal following signature in British history.
Prime Minister Narendra Modi and his British counterpart Keir Starmer confirmed the date after discussions on the sidelines of the G7 Summit in Evian, marking a major milestone in bilateral economic ties and clearing the final hurdles that had delayed the pact’s rollout.
The Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, is expected to significantly boost trade and investment flows between the two countries. It will provide immediate duty-free access to 99 per cent of Indian exports to the UK while liberalising 90 per cent of Indian tariff lines for British goods.
Calling the agreement “a historic milestone for India-UK relations”, Modi said the deal would deepen economic engagement and create fresh opportunities for Indian farmers, workers, MSMEs, startups and innovators.
“In a major stride for India’s global economic engagement, India and the United Kingdom today announced that the CETA will enter into force on July 15, 2026,” the Commerce Ministry said in a statement.
Steel dispute resolved
The implementation of the agreement had faced delays due to regulatory procedures and disagreements over Britain’s steel safeguard measures.
The UK had proposed restrictions that would have allowed duty-free access to only about 60 per cent of Indian steel exports by volume from July 1. The issue became a sticking point in trade discussions, with India warning that such measures could undermine the spirit of the free trade agreement.
Following negotiations, both sides reached a compromise under which around 85 per cent of India’s steel exports will remain outside the scope of the safeguard measures through a combination of country-specific quotas, residual quotas and access under Britain’s Authorised Use Scheme.
The Commerce Ministry said India and the UK had “successfully reached a landmark consensus to safeguard and promote bilateral steel trade” while ensuring a balanced trading environment for exporters.
Tariff cuts across sectors
The trade agreement will deliver sweeping tariff reductions across several sectors.
Duties on Scotch whisky will fall sharply from 150 per cent to 75 per cent immediately and eventually to 40 per cent over the next decade. Automotive tariffs will be reduced from over 100 per cent to 10 per cent under a quota-based system.
For Indian exporters, the gains are expected to be substantial. Tariffs on sectors such as textiles, clothing, leather, footwear, engineering goods, marine products, processed food and chemicals will either be eliminated or significantly reduced.
The British government said the agreement would make trade “cheaper, quicker and easier” for businesses in both countries while strengthening an economic relationship already valued at about £48 billion annually.
According to official estimates, the pact could increase bilateral trade by £25.5 billion every year over the long term. It is also projected to add £4.8 billion annually to the UK economy and £5.1 billion to India’s GDP.
Social security pact to begin simultaneously
Alongside the trade agreement, the India-UK Double Contribution Convention (DCC) will also take effect on July 15.
The arrangement will allow Indian professionals working temporarily in the UK, and British nationals working in India, to continue contributing to their home country’s social security systems for up to 60 months without paying into both systems simultaneously.
The government estimates that more than 75,000 Indian professionals and over 900 companies could benefit from the arrangement.
Commerce and Industry Minister Piyush Goyal said the simultaneous implementation of the trade and social security agreements would open up significant opportunities for Indian exporters and professionals.
“By securing immediate duty-free access on 99 per cent of our tariff lines, we have systematically dismantled long-standing tariff walls,” Goyal said.
Part of broader trade push
The operationalisation of the India-UK trade pact comes as New Delhi accelerates negotiations with several major economic partners.
On the sidelines of the G7 Summit, Modi also held discussions with European leaders on advancing the proposed India-European Union free trade agreement, with both sides aiming to conclude negotiations by the end of the year.
India and Canada have similarly agreed to push ahead with talks on a bilateral trade pact as New Delhi seeks to expand market access and diversify export opportunities amid an uncertain global trade environment.
The July 15 rollout of the India-UK agreement is being seen as one of India’s most significant trade achievements in recent years, offering a template for future negotiations with other major economies.
