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India-UK FTA (Representative Image)
The India-UK free trade agreement signed last year is expected to come into force from April 2026, according to media reports.
The agreement, formally titled the Comprehensive Economic and Trade Agreement (CETA), was signed on July 24, 2025. It is aimed at significantly strengthening bilateral trade by reducing tariffs on a wide range of goods and opening up new market access opportunities for businesses in both nations.
Under the pact, India will progressively lower import duties on several British products. Tariffs on Scotch whisky and gin, currently at 150 percent, will be cut to 75 percent immediately upon implementation and further reduced to 40 percent by 2035. Import duties on automobiles will also be eased in phases under a quota-based system, a move that could influence car prices in the Indian market.
The agreement is also expected to provide a major boost to Indian exporters. As per the terms of the deal, 99 percent of Indian exports will gain zero-duty access to the UK market, benefiting key sectors like textiles, footwear, gems and jewellery, sports goods and toys.