India and United Kingdom sign the historic free trade agreement (FTA) in the presence of both PMs and was signed by Union Minister Piyush Goyal and his British counterpart Jonathan Reynolds on July 24, 2025.
| Photo Credit: Getty Images
The India-U.K. free trade agreement, signed in July last year, is likely to be implemented in April 2026, according to an official.
India and the U.K., on July 24, 2025, signed the Comprehensive Economic and Trade Agreement (CETA) under which 99% of Indian exports will enter the British market at zero duty, while tariffs on British products such as cars and whisky will be reduced in India.
“We are expecting the pact to be implemented from April this year,” the government official said.
The two countries have also signed the Double Contributions Convention (DCC) pact to ensure temporary workers would not have to duplicate social levies in either country.
The official said that both pacts are likely to be implemented in parallel.
The pact needs approval from the U.K. parliament before it is implemented.
In India, the Union cabinet approves such agreements. After it gets approved by the British parliament, it will be implemented on a mutually agreed date.
The House of Commons in the U.K. held a debate on the India-U.K. CETA earlier this week.
Chris Bryant, Minister of State in the Department for Business and Trade, responded on behalf of the Labour government to stress that CETA was a momentous achievement, which goes “well beyond India’s precedent in opening the door for U.K. businesses”.
The British Parliament is ratifying the agreement, including debates across both Houses (House of Commons and House of Lords) and reviews by relevant committees on all aspects of the agreement, before it can be implemented in the coming months.
CETA aims to double the $56 billion trade between the world’s fifth and sixth largest economies by 2030.
While 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.
Under the pact, which has been termed CETA, tariffs on Scotch whisky will be reduced from 150% to 75% immediately, and further lowered to 40% by 2035.
On automobiles, India will reduce import duties to 10% over five years, down from the current rate of up to 110%, under a gradually liberalised quota system.
In return, Indian manufacturers will gain access to the U.K. market for electric and hybrid vehicles within a quota framework.
Published – February 15, 2026 05:45 pm IST
