India-UK Free Trade Agreement in force, 99% of Indian exports duty‑free

On July 15 2026 the India‑UK Comprehensive Economic and Trade Agreement (CETA) and the accompanying Agreement on Social Security became operational. The pact gives Indian exporters near‑zero duty access for about 99 % of their goods to the United Kingdom, covering almost the entire value of bilateral trade. In return, the UK will eliminate duties on 96.8 % of tariff lines (covering 97.7 % of trade value) and will cut tariffs on many British products, including luxury cars (import duty reduced from 110 % to 10 % over a phased quota), Scotch whisky and gin (from 150 % to 75 % now, falling to 40 % over ten years), chocolates, cosmetics, machinery and other consumer goods.

India will remove duties on 64.1 % of tariff lines immediately and phase out another 21 %, with special quotas for passenger cars (20,000 units in the first year) and reduced rates on British automobiles, whisky and other goods. The agreement is expected to raise bilateral trade from the current $55‑60 billion to $100 billion by 2030 and to benefit labour‑intensive sectors such as textiles, garments, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods, as well as MSMEs and farmers.

The social‑security arrangement exempts Indian professionals on short‑term assignments in the UK from paying double National Insurance contributions for up to five years, benefiting roughly 75,000 workers and about 900 employers and improving the competitiveness of Indian talent abroad.