The UK-India Free Trade Agreement (FTA) will officially come into force on July 15, 2026, This marks a significant step forward in economic cooperation between the two countries. The implementation date was announced by UK Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, paving the way for businesses to begin trading under the new framework. The agreement is expected to deliver substantial economic benefits, with bilateral trade projected to increase by £25.5 billion annually in the long run. It is also forecast to add £4.8 billion to the UK economy and £5.1 billion to India’s GDP. One of the biggest highlights of the deal is the sharp reduction in tariffs.
UK Business and Trade Secretary Peter Kyle said: “We are bringing our landmark trade deal with India into force as quickly as we can because we want businesses in both India and the UK to immediately feel the benefits of 99% of UK tariffs and 90% of Indian tariffs being liberalised. Trade is going to be cheaper, quicker, and easier for businesses on both sides, and I encourage all businesses to ensure that they are properly prepared to sell to each other’s market in the years to come. The date is now set to boost our £48 billion trading relationship and take it to the next level. Meanwhile, import duties on British whisky entering India will drop from 150% to 40%. Also, tariffs on automobiles will be reduced from 100% to 10% under a quota system. Cosmetics and several other products will also see tariff barriers removed. Indian exporters are expected to get major benefits as the UK reduces tariffs on products including apparel, footwear and select food items. The agreement also includes provisions easing social security obligations for professionals working in each other’s countries, further strengthening business and workforce mobility between the two nations.