India-UK FTA Set To Begin In April, Tariffs On Whisky And Cars To Ease
New Delhi : India and the United Kingdom are on track to put their long-awaited free trade agreement (FTA) into effect as early as April 2026 according to the sources. The deal formally known as the Comprehensive Economic and Trade Agreement (CETA) was signed on July 24, 2025, and is expected to significantly expand bilateral trade between the two nations.
Once implemented, nearly 99 % of Indian exports will be permitted into the UK duty-free, opening up wider market access for products ranging from textiles to gems and jewellery. In return, India will gradually cut tariffs on selected British imports, including Scotch whisky and automobiles, to encourage two-way commerce.
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The agreement also includes a Double Contributions Convention (DCC), designed to prevent temporary workers from being charged social security contributions in both countries simultaneously, easing the movement and residence of professionals. Official sources told PTI that both the trade pact and the DCC are likely to be rolled out concurrently.
Before the pact can take effect, it must be ratified by the UK Parliament including scrutiny and approval from both the House of Commons and House of Lords and formally endorsed by the Indian Cabinet. Once these approvals are secured, authorities from both sides will finalise an implementation date, expected around April.
Under the terms of the FTA, tariffs on Scotch whisky imported to India would be cut from 150 % to 75 % immediately and eventually reduced further over the coming decade. Automobile tariffs, currently exceeding 100 %, are set to be lowered to 10 % under a quota system over several years.
The pact aims to strengthen economic ties and is projected to boost trade between the two major economies, helping industries in both India and the UK expand their market reach.
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