India-UK FTA set for April rollout after ratification
CETA to grant 99 pc Indian exports zero-duty access to UK; tariffs on Scotch, cars to fall as both nations target doubling USD 56 bn trade by 2030
The India–UK Free Trade Agreement (FTA), formally known as the Comprehensive Economic and Trade Agreement (CETA), is expected to come into force in April 2026, news agency PTI has reported citing an unnamed government official in the know.
India and the United Kingdom signed the trade pact on July 24, 2025. Under the agreement, 99 per cent of Indian exports will gain zero-duty access to the UK market. In return, India will reduce tariffs on select British goods, including automobiles and Scotch whisky.
“We are expecting the pact to be implemented from April this year,” the official said, referring to the upcoming financial year timeline.
Ratification process underway in UK
Before the agreement takes effect, it requires ratification by the UK Parliament. In India, such trade agreements require approval from the Union Cabinet. Once the British Parliament completes its approval process, the two sides will notify a mutually agreed date for implementation.
The UK House of Commons held a debate on the India-UK CETA earlier this week. Chris Bryant, Minister of State in the Department for Business and Trade, said the deal was a significant milestone and goes “well beyond India’s precedent in opening the door for UK businesses”.
The British Parliament is currently ratifying the agreement through debates in both the House of Commons and the House of Lords, along with committee scrutiny.
Key tariff cuts and trade targets
CETA aims to double bilateral trade, currently valued at around USD 56 billion, by 2030 between the world’s fifth and sixth largest economies.
Under the pact, 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. On automobiles, India will reduce import duties from up to 110 per cent to 10 per cent over five years under a quota-based system.
India has also opened its market to consumer goods such as chocolates, biscuits and cosmetics. In return, Indian exporters will gain improved access for textiles, footwear, gems and jewellery, sports goods and toys. Indian manufacturers will also secure quota-based access to the UK market for electric and hybrid vehicles.
Double Contributions Convention
Alongside CETA, the two countries signed a Double Contributions Convention (DCC), which ensures that temporary workers will not have to pay social security contributions in both countries for the same period.
According to officials, both the India-UK CETA and the DCC are likely to be implemented simultaneously once the ratification process is complete.
(With agency inputs)