India-UK Free Trade Agreement Effective July 15, Boosting Bilateral Trade

India and the United Kingdom will put their Comprehensive Economic and Trade Agreement (CETA) into force on 15 July 2026, a day after the agreed start date was announced at the G7 summit. Both governments described the pact as a historic milestone and said it should double bilateral trade to $100‑$120 billion by 2030.

The deal is forecast to raise the UK’s GDP by about £4.8 billion annually and India’s by roughly £5.1 billion. Tariffs on a wide range of goods will be cut to zero, including Indian textiles, leather, footwear, engineering goods and pharmaceuticals, and UK whisky will see its tariff fall from 150 % to 40 %. In the automotive sector, Indian import quotas will allow up to 3.78 million conventional‑engine cars over 15 years, with duties phased down from around 110 % to 10 %.

India’s concerns over the UK’s forthcoming steel safeguard measures were addressed, with 85 % of Indian steel exports remaining outside the new quotas. The agreement also extends the double‑contribution social‑security exemption for Indian workers in the UK to five years. Customs procedures are being readied so exporters can claim concessions from day one.