India–UK Trade Pact Nears Enforcement as Both Sides Target April 2026

The India-UK Free Trade Agreement, which was signed between India and the UK last year in July, is likely to come into effect from April 2026. An official from the Indian government stated that both parties are expecting the agreement to come into effect from April this year. Under the agreement, which was signed on July 24, 2025, 99 percent of India's exports are likely to enter the UK market without paying customs duty. The import duties on cars and whiskey from the UK are also likely to be reduced.

The official further stated that an agreement on a Double Contribution Convention has also been signed between India and the UK, which would allow temporary workers to avoid repayment of social contributions. It is likely that both agreements would be implemented simultaneously. The agreement requires the approval of the British Parliament before it can come into effect. In India, such international agreements are approved by the Union Cabinet. After approval by the British Parliament, the date of implementation will be decided by mutual agreement.

The India-UK CETA was discussed in the House of Commons, the lower house of the British Parliament, earlier this week. Chris Bryant, Minister of State at the Department of Trade and Industry, responding on behalf of the Labour government, said that this agreement is a major achievement and will open the doors of the Indian market to British businesses more than ever before.

Under parliamentary procedure, the agreement will be debated in both Houses of Commons and the House of Lords, and relevant committees will review all aspects of it. The agreement aims to double the $56 billion trade between India and the UK, the world's fifth and sixth largest economies, by 2030.

Under the agreement, India has opened its market to consumer products such as chocolate, biscuits, and cosmetics, while India will gain greater access to the UK for export products such as textiles, footwear, gems and jewellery, sporting goods, and toys.

Import duties on Scotch whisky will be reduced immediately from 150 percent to 75 percent, with a target to further reduce this to 40 percent by 2035. In the automobile sector, India will phase in import duties from 110 percent to 10 percent over five years. In return, Indian automakers will gain access to the UK market for electric and hybrid vehicles under a fixed quota system.