The India-UK Free Trade Agreement (FTA) will officially come into force on July 15, 2026, marking a major milestone in economic relations between the two countries after years of negotiations.
Signed earlier this year, the agreement is expected to reduce or eliminate tariffs on thousands of products traded between India and the United Kingdom, making goods more competitive in both markets while encouraging greater investment and business cooperation.
Under the agreement, India will gradually reduce import duties on several UK products, including cars, whisky, cosmetics, medical devices, chocolates, and processed food. Tariffs on premium UK automobiles will be lowered over the next decade in different phases, while import duties on whisky and gin will also be significantly reduced over time.
In return, the UK will eliminate tariffs on 99% of Indian exports, benefiting sectors such as textiles, leather, footwear, engineering goods, marine products, gems and jewellery, pharmaceuticals and processed food. The agreement is expected to improve market access for Indian businesses and strengthen the country’s export competitiveness.
The India-UK Free Trade Agreement also covers government procurement, intellectual property, services, digital trade and professional mobility, creating new opportunities for businesses and skilled professionals in both countries.
According to official estimates, the agreement is expected to increase bilateral trade by £25.5 billion (around $34 billion) every year in the long term. The UK government has also projected the deal could add £4.8 billion annually to the UK’s GDP and boost wages by £2.2 billion over time.
