India-UK Free Trade Agreement Implementation Expected in April 2026

CETA Agreement Signed in July 2025​

India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. Under CETA, 99 per cent of Indian exports will enter the British market at zero duty. Tariffs on British products, such as cars and whisky, will be reduced in India.

Implementation Timeline and Approvals​

According to an official, the agreement is expected to be implemented from April this year. Both countries have also signed the Double Contributions Convention (DCC) agreement to ensure that temporary workers will not have to duplicate social levies in either country. Both agreements are likely to be implemented in parallel.

The agreement requires approval from the UK parliament before implementation. In India, the Union cabinet approves such agreements. Implementation will occur on a mutually agreed date after approval by the British parliament.

UK Parliament Debate and Ratification​

The House of Commons in the UK held a debate on the India-UK CETA earlier this week. Chris Bryant, Minister of State in the Department for Business and Trade, responded on behalf of the Labour government, emphasizing that CETA was a momentous achievement, which goes "far beyond India's precedent in opening the door for UK businesses."

The British Parliament is currently ratifying the agreement, which includes debates across both Houses (House of Commons and House of Lords) and reviews by relevant committees.

Trade Goals and Product Access​

CETA aims to double the USD 56 billion trade between the world's fifth and sixth largest economies by 2030.

India has opened its market to various consumer goods, including chocolates, biscuits, and cosmetics. It will gain greater access to export products such as textiles, footwear, gems and jewellery, sports goods, and toys.

Tariff Reductions for Key Products​

Under the agreement, tariffs on Scotch whisky will be reduced from 150 per cent to 75 per cent immediately, and further lowered to 40 per cent by 2035.

India will reduce import duties on automobiles to 10 per cent over five years, down from the current rate of up to 110 per cent, under a gradually liberalised quota system. In return, Indian manufacturers will gain access to the UK market for electric and hybrid vehicles within a quota framework.