India-UK FTA: The India-UK Free Trade Agreement (FTA) is expected to come into effect from the second week of May, marking a major step in strengthening bilateral economic ties. The Comprehensive Economic and Trade Agreement (CETA), signed on July 24, 2025, will enable 99 per cent of Indian exports to enter the UK market duty-free. In exchange, India will lower tariffs on a range of British goods, including cars and whisky.
"We are expecting the pact to be implemented from the second week of May," news agency PTI quoted an official as saying.
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Double Contributions Convention Pact
The two countries have also signed the Double Contributions Convention (DCC), which is expected to be implemented alongside the CETA. The agreement will ensure that temporary workers are not required to make social levies in both countries.
India-UK FTA: THESE Products To Get Cheaper
The Comprehensive Economic and Trade Agreement (CETA) seeks to double the USD 56 billion trade between India and the UK by 2030. While India has opened its market to several consumer goods, including chocolates, biscuits, and cosmetics, it is set to gain enhanced access for export products such as textiles, footwear, gems and jewellery, sports goods, and toys.
- Under the agreement, tariffs on Scotch whisky will be cut from 150 per cent to 75 per cent immediately and further reduced to 40 per cent by 2035.
- In the automobile sector, India will lower import duties to 10 per cent over five years from the current rate of up to 110 per cent under a liberalised quota system.
- In return, Indian manufacturers will gain access to the UK market for electric and hybrid vehicles within a quota framework.
(With PTI Inputs)