Update – UK–India FTA to Enter into Force on 15 July 2026
The UK and India have confirmed that the UK–India Free Trade Agreement (FTA) will enter into force on 15 July 2026, following the completion of the required ratification and domestic approval procedures.
From that date, businesses will be able to claim the agreement's preferential tariff treatment, with duty-free access covering approximately 99% of Indian exports to the UK and phased tariff reductions applying across a significant share of UK exports to India, including products such as whisky, automotive goods and cosmetics.
Simplified Rules of Origin
One of the practical changes introduced by the agreement is a simplified approach to Rules of Origin, making it easier for businesses to claim preferential tariff treatment. Exporters will be able to self-certify the origin of qualifying goods, while UK importers may also rely on importer knowledge in certain circumstances. For consignments valued below £1,000, no origin documentation is required, helping reduce administrative requirements for smaller shipments.
Preparing for Entry into Force
With the agreement now taking effect, businesses trading between the UK and India should review whether their products qualify for preferential treatment, assess the applicable Rules of Origin and ensure their customs and documentation processes are ready before claiming the new tariff benefits.
CATTS can support businesses in assessing eligibility, reviewing Rules of Origin requirements and preparing the customs processes and documentation needed to apply the agreement correctly. Contact us to discuss how the UK–India FTA may affect your trade flows.
Read the original announcement and signing update below for background on the agreement and its key provisions.
For more details and sector-wise gains under CETA please refer Govt. of India
Update – July 25, 2025
The landmark UK–India FTA that was announced in early May was officially signed in London on July 24, 2025. This formal signing, presided over by Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, marks India’s first comprehensive trade deal with a European nation and confirms the UK’s most significant trade pact since Brexit. Notably, the key terms unveiled in May remain unchanged:
- India will cut or remove tariffs on 90% of British goods exports, with reductions on items like Scotch whisky, gin, and automobiles.
- The UK will eliminate tariffs on 99% of Indian exports to Britain, providing Indian goods like textiles, footwear, and food at lower prices.
The July 24 pact also introduces new elements beyond tariff cuts, including:
Services & Mobility:
- Expanded access for professionals like yoga instructors, chefs, and tech experts through new quotas and mutual recognition of qualifications.
- Double Contributions Convention: Allows Indian workers posted to the UK (and vice versa) to be exempt from social security contributions for up to 3 years, saving Indian workers and firms around ₹4,000 crore (~$460 million) annually.
Regulatory Cooperation:
- 27 chapters covering innovation, anti-corruption, digital trade, customs alignment, and regulatory transparency.
Non-Tariff Issues:
- Discussions on the UK’s Carbon Border Adjustment Mechanism still pending, which may impact Indian steel and aluminum exports.
Entry into Force:
Following the completion of the required ratification and domestic approval procedures, the UK–India Free Trade Agreement will enter into force on 15 July 2026.
Source: The Economic Times
May 7, 2025
The United Kingdom and India have finalized a historic Free Trade Agreement (FTA), marking the UK's most significant trade pact since its departure from the European Union in 2020. Announced on May 6, 2025, the deal aims to enhance economic ties between the world's fifth and sixth-largest economies, with projections indicating a £25.5 billion annual increase in bilateral trade by 2040.
Key Provisions of the Agreement
- Tariff Reductions on UK Exports: India will substantially reduce import duties on a range of British products. Notably, tariffs on Scotch whisky and gin will decrease from 150% to 75% immediately, with a further reduction to 40% over the next ten years. Automotive tariffs on UK-made vehicles, such as Jaguars and Land Rovers, will fall from over 100% to 10% under a quota system. Other British goods, including cosmetics, aerospace equipment, medical devices, lamb, salmon, electrical machinery, soft drinks, chocolate, and biscuits, will also benefit from reduced tariffs.
- Benefits for Indian Exports: The UK will eliminate tariffs on 99% of Indian exports, encompassing textiles, footwear, and food products like frozen prawns. This move is expected to provide UK consumers with a wider variety of goods at more competitive prices.
- Economic Impact: The UK government anticipates that the FTA will boost the UK economy by £4.8 billion and increase wages by £2.2 billion over the next 15 years.
This comprehensive FTA is poised to strengthen the economic partnership between the UK and India, fostering growth, creating jobs, and offering consumers in both countries access to a broader range of goods and services.
The agreement was subsequently signed on 24 July 2025 and will enter into force on 15 July 2026. See the latest update at the top of this page.
For more details, please refer Gov.uk