India-UK Trade Deal Takes Effect July 15, Opening Duty‑Free Trade for Most Goods

The India‑UK Comprehensive Economic and Trade Agreement (CETA) becomes operational on 15 July 2026. The pact grants near‑full duty‑free access – about 99 % of tariff lines – to Indian exporters entering the UK market and cuts Indian import duties on a wide range of British products. Tariffs on premium drinks such as Scotch whisky fall from 150 % to 75 % initially and to 40 % over ten years. Automotive duties are reduced from 110 % to 10 % for fully built UK cars under a quota system, with electric and hybrid models gaining preferential treatment from the sixth year. Labour‑intensive sectors – textiles, garments, leather, footwear, marine products, gems and jewellery, sports goods and toys – are expected to benefit most, while engineering goods, auto components and organic chemicals also see improved market access. Analysts project that bilateral trade could rise by up to £25 billion annually and potentially double to around US$120 billion by 2030. The agreement also opens roughly 40 000 UK‑supplied contracts in Indian government procurement and introduces a “Double Contributions Convention” that exempts Indian professionals working temporarily in the UK from paying social‑security contributions in both countries. A public dialogue in New Delhi will examine the historical legacy of the India‑UK relationship following the deal’s signing.