India-UK trade agreement likely to come into force in April: Report

The India-UK free trade agreement signed in July last year is expected to be implemented from April 2026, a government official said.

India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025, under which 99 per cent of Indian exports will enter the British market at zero duty, while India will reduce tariffs on a range of British goods including cars and whisky.


“We are expecting the pact to be implemented from April this year,” the official said, as quoted by news agency PTI.

Parliamentary approval process underway

The agreement requires approval from the UK Parliament before it can take effect. In India, such trade agreements are cleared by the Union Cabinet.

According to PTI, after ratification by the British Parliament, the pact will be implemented on a mutually agreed date. The House of Commons held a debate on the India-UK CETA earlier this week.

Chris Bryant, minister of state in the UK Department for Business and Trade, responded during the debate on behalf of the Labour government, describing CETA as a significant achievement that goes “well beyond India's precedent in opening the door for UK businesses”.

The British Parliament is currently ratifying the agreement, including debates in both the House of Commons and the House of Lords, along with committee reviews, before implementation in the coming months.

Double contributions convention to be implemented in parallel

Alongside CETA, the two countries have signed a Double Contributions Convention (DCC) pact to prevent temporary workers from having to pay social security contributions in both countries.

The official said both CETA and the DCC are likely to be implemented in parallel, as per PTI.

Tariff reductions and market access

CETA aims to double bilateral trade, currently estimated at $56 billion, between the world’s fifth and sixth largest economies by 2030.

Under the agreement, India will reduce import duties on Scotch whisky from 150 per cent to 75 per cent immediately, with a further reduction to 40 per cent by 2035.

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Import duties on automobiles will be cut to 10 per cent over five years from the current levels of up to 110 per cent, under a quota-based liberalisation system.

In return, Indian exporters are set to gain improved access to the UK market for goods such as textiles, footwear, gems and jewellery, sports goods and toys.

India has also agreed to lower tariffs on British consumer products including chocolates, biscuits and cosmetics.

During his visit to India in 2025, UK Prime Minister Keir Starmer expressed the desire for the agreement to be implemented as soon as “humanly possible.”

Speaking in Mumbai in October last year, Starmer described the trade deal as Britain’s largest post-Brexit trade achievement and said he had instructed his team to ensure it is executed “as quickly as humanly possible”.

Also read| India-UK trade deal: Starmer wants FTA implementation as soon as 'humanly possible'!

The agreement was signed during Prime Minister Narendra Modi’s visit to London in July 2025.

Economists estimate the pact could increase trade between the two countries by about £25.5 billion ($34 billion) by 2040, with UK officials describing that figure as a starting point for further growth.

If implemented as expected in April 2026, the agreement would mark a significant step in expanding bilateral economic ties and reducing tariff barriers across key sectors.