New Trade Agreement with UK to Commence on July 15
NEW DELHI: The India-UK free trade agreement (FTA) and the social security deal will take effect on July 15, following discussions between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer in Evian. A senior government official confirmed that the agreement includes provisions addressing the interests of stakeholders in the steel sector.
The FTA aims to eliminate tariffs on 99% of Indian exports and facilitate access to services sectors, along with streamlined visa regulations. However, the UK government’s decision to impose tariffs on steel products had previously stalled the agreement. India sought assurances regarding the carbon border adjustment mechanism, but it remains unclear if any concessions were made on this issue during the finalization of the trade deal.
Following negotiations on the UK’s upcoming steel measures, effective July 1, 2026, both nations agreed to protect commercial interests and minimize market disruptions. According to the commerce department, 85% of India’s exports are affected by these steel measures, and India’s interests have been safeguarded through a combination of country-specific quotas and access under the Authorised Use Scheme.
The implementation of the treaty, finalized in May 2025, coincides with renewed focus on US tariffs, as the deadline for the end of the 10% additional levy approaches. Commerce and Industry Minister Piyush Goyal stated that the agreement provides immediate duty-free access on 99% of tariff lines, dismantling long-standing tariff barriers. This will enable Indian sectors such as textiles, leather, and processed food to compete more effectively.
For Indian consumers, the deal will reduce duties on Scotch from 150% to 40%, on automobiles from 100% to 10% with quotas, and eliminate duties on cosmetics.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
