India-UK Trade Agreement Set to Take Effect in April, According to Report
The India-UK free trade agreement, known as the Comprehensive Economic and Trade Agreement (CETA), is set to be implemented in April 2026, according to government officials. Signed on July 24, 2025, the agreement allows for 99% of Indian exports to enter the UK market duty-free. In return, India will reduce tariffs on various British goods, including cars and whisky. The agreement is currently undergoing the parliamentary approval process in the UK, while India’s Union Cabinet will also need to ratify it.
Parliamentary Approval Process Underway
The CETA requires ratification from the UK Parliament before it can take effect. In India, the Union Cabinet is responsible for clearing such trade agreements. Recent debates in the House of Commons have highlighted the significance of the CETA, with Chris Bryant, a minister in the UK Department for Business and Trade, emphasizing its importance for UK businesses. The British Parliament is currently reviewing the agreement through debates in both the House of Commons and the House of Lords, along with committee evaluations. The timeline for implementation will be determined after the ratification process is completed.
Double Contributions Convention to be Implemented in Parallel
In addition to the CETA, India and the UK have signed a Double Contributions Convention (DCC). This pact aims to prevent temporary workers from having to pay social security contributions in both countries. Officials have indicated that both the CETA and the DCC are likely to be implemented simultaneously. This parallel implementation is expected to streamline processes for workers moving between the two nations, enhancing economic cooperation.
Tariff Reductions and Market Access
The CETA aims to double the current bilateral trade, which stands at approximately $56 billion, by 2030. Under the agreement, India will significantly reduce import duties on Scotch whisky from 150% to 75% immediately, with a further reduction to 40% by 2035. Additionally, tariffs on automobiles will decrease to 10% over five years from current levels that can reach up to 110%. In exchange, Indian exporters will gain improved access to the UK market for various goods, including textiles, footwear, and sports equipment. India has also committed to lowering tariffs on British consumer products such as chocolates and cosmetics.
Significance of the Agreement
The CETA is viewed as a major milestone in post-Brexit trade relations for the UK. During his visit to India in 2025, UK Prime Minister Keir Starmer expressed a strong desire for the agreement to be implemented as soon as possible. He described the CETA as Britain’s largest trade achievement since Brexit and emphasized the need for swift execution. Economists predict that the agreement could boost trade between India and the UK by approximately £25.5 billion ($34 billion) by 2040, marking a significant step in strengthening bilateral economic ties and reducing tariff barriers across key sectors.
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