India and the UK: The Free Trade Agreement (FTA) between India and the UK will come into effect on July 15 of this year. Both nations announced this development. The agreement is being implemented less than a year after it was formally signed. London has described this as the fastest implementation of such a large-scale agreement. Once the agreement comes into force, 99 percent ( 99% of ) of Indian products will gain duty-free (zero-tariff) access to the UK market.
PM Modi Expresses Happiness via Social Media
Prime Minister Narendra Modi also shared this information through a social media post. He wrote, “A historic milestone for India-UK relations. Delighted to learn that the India-UK Comprehensive Economic and Trade Agreement will come into effect on July 15, 2026. This agreement will significantly boost our bilateral trade and investment. It will open up numerous opportunities for Indian farmers, workers, MSMEs, startups, and innovators, contributing significantly to achieving the goal of ‘Viksit Bharat 2047’ (Developed India 2047). British Prime Minister Keir Starmer and I—both present in Evian for the G7 Summit—are very happy with the new momentum our economic ties are gaining.”
99 Percent of Indian Products to be Exempt from Tariffs in the UK
India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025, under which 99 percent of Indian exports will enter the UK market at zero tariffs. Additionally, Indian exports such as rice, tea, spices, shrimp, machinery, auto components, engineering tools, textiles, footwear, gems and jewelry, sports goods, toys, pharmaceuticals, and electric and hybrid vehicles will gain improved access to the British market. On the other hand, India will reduce tariffs on British products such as luxury cars and alcohol. The goal of CETA is to double trade between the two economies to $56 billion by 2030.
These British products will become cheaper in India
Under the agreement, several British products entering India will become cheaper:
Chocolate
Biscuits
Cosmetics
Scotch
Whisky
Luxury vehicles
Salmon
Lamb
Soft drinks
Medical devices and equipment
Aerospace parts and components
Furniture and electronics
Businesses can trade under the agreement’s terms starting July 15
In a statement issued on Wednesday, the Ministry of Commerce announced that India and the UK have declared the Comprehensive Economic and Trade Agreement (CETA) will come into effect on July 15, 2026. The UK’s Department for Business and Trade stated that businesses now have 28 days to prepare for its implementation, after which they will be able to trade under the terms of the agreement starting July 15.
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