The India-UK Free Trade Agreement might commence in the coming month. Amar Ujala Sources suggest that it might commence in the second week of May.
India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. Under this deal, 99% of India’s exports will be able to enter the UK without paying any taxes, whereas India will reduce taxes on imports of British goods such as automobiles and whiskey. The objective is to double the current level of trade between the two countries to $112 billion by the year 2030.
Increased access for Indian goods: Under this deal, India will be allowed to export a greater range of consumer goods such as chocolates, biscuits, and cosmetic products, along with better access for textile, footwear, gems and jewelry, sports equipment, and toys.
Electric and hybrid vehicle export opportunities:
- Import duties on British Scotch whisky will be immediately reduced from 150 percent to 75 percent. This will be gradually reduced to 40 percent by 2035.
- In the automobile sector, India will reduce import duties from the current 110 percent to 10 percent over five years.
- In return, Indian companies will gain quota-based access to the British market for the export of electric and hybrid vehicles.
- India and the UK have also signed a Double Contribution Treaty agreement.
- This will prevent temporary workers from both countries from paying social levies twice.