By: The Trek News Desk
The Free Trade Agreement (FTA) signed between India and the United Kingdom last year is expected to be implemented from April 2026, subject to formal approval by the British Parliament. According to official sources, the agreement will take effect once the ratification process in the U.K. is completed.
India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. Under the deal, 99 per cent of Indian exports will gain duty-free access to the U.K. market. In return, India will gradually reduce import tariffs on select British goods, including automobiles and whisky.
A senior government official indicated that New Delhi is aiming for the agreement to be operational by April this year. Alongside CETA, both countries have also concluded the Double Contributions Convention (DCC), which will prevent temporary workers from paying social security contributions in both nations simultaneously. The two agreements are expected to be enforced in parallel.
Before the trade pact can be enforced, it must be cleared by the British Parliament. Earlier this week, a debate on CETA was held in the House of Commons.
Responding on behalf of the Labour government, Trade Minister Chris Bryant described the agreement as a landmark achievement, noting that it significantly enhances opportunities for British businesses seeking access to the Indian market.
The agreement is currently undergoing scrutiny in both chambers of Parliament, the House of Commons and the House of Lords, along with reviews by relevant parliamentary committees. Once these procedures are complete, both sides will mutually decide the date of implementation. In India, such international agreements require approval from the Union Cabinet.
CETA aims to double bilateral trade, currently valued at $56 billion, by the year 2030. As part of the arrangement, India has agreed to open its market to several British consumer goods such as chocolates, biscuits, and cosmetics.
On the other hand, Indian exporters are set to benefit from improved market access in sectors including textiles, footwear, gems and jewellery, sports goods, and toys.
The agreement provides for an immediate reduction in import duties on Scotch whisky from 150 per cent to 75 per cent, with a further phased cut to 40 per cent by 2035.
In the automotive sector, India will lower import duties from as high as 110 per cent to 10 per cent over five years under a quota-based liberalisation framework. In exchange, Indian manufacturers will gain access to the U.K. market for electric and hybrid vehicles within agreed quota limits.
Source: News Agencies
