India-UK trade deal implementation likely in April; whisky, auto tariffs to fall

India and the UK, on July 24, 2025, signed the Comprehensive Economic and Trade Agreement (CETA) under which 99 per cent 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.

• India-UK free trade pact likely to start from April 2026
• 99 percent of Indian exports to UK will get zero duty access
• Tariffs on Scotch whisky and cars to be reduced under the deal

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The India-UK free trade agreement signed last year is expected to come into force from April 2026, a government official has said, raising hopes of a major boost to bilateral trade and market access for Indian exporters.

India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. Under the pact, 99 per cent of Indian exports will enter the British market at zero duty. In return, India will reduce tariffs on select British goods, including cars and Scotch whisky.

"We are expecting the pact to be implemented from April this year," the government official said to news agency PTI.

Alongside CETA, the two countries also signed the Double Contributions Convention (DCC), which will ensure that temporary workers are not required to pay social security contributions in both countries.

The official indicated that both agreements are likely to be implemented simultaneously.

Approval process underway

Before implementation, the agreement requires approval from the UK Parliament. In India, such trade agreements are cleared by the Union Cabinet.

The UK’s House of Commons held a debate on the India-UK CETA earlier this week. Chris Bryant, Minister of State in the Department for Business and Trade, described the agreement as a significant milestone, stating it goes "well beyond India's precedent in opening the door for UK businesses".

The British Parliament is currently in the process of ratifying the agreement, including debates in both the House of Commons and the House of Lords, along with committee-level reviews. The pact will be implemented on a mutually agreed date after the approval process is completed.

What the deal means for Trade

CETA aims to double the current $56 billion trade between India and the UK by 2030.

India has opened its market to a range of British consumer goods, including chocolates, biscuits and cosmetics. In exchange, Indian exporters are expected to gain improved access to the UK market for products such as textiles, footwear, gems and jewellery, sports goods and toys.

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

On automobiles, India will gradually cut import duties from up to 110 per cent to 10 per cent over five years under a quota-based system. In return, Indian manufacturers will receive market access in the UK for electric and hybrid vehicles within a quota framework.

The agreement marks a significant step in strengthening economic ties between the world’s fifth and sixth largest economies and is expected to reshape trade flows once it comes into effect.