India-UK Free Trade Agreement on Track for April 2026 Implementation
The landmark India-United Kingdom Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, is expected to be implemented starting April 2026, according to a senior government official. This strategic pact represents a major advancement in economic relations between the world's fifth and sixth largest economies.
Parliamentary Approval Process Underway
The agreement requires formal ratification by the UK Parliament before it can take effect. In India, such trade deals are cleared by the Union Cabinet. The British Parliament is currently engaged in the ratification process, which includes debates in both the House of Commons and the House of Lords, along with comprehensive committee reviews.
During a recent debate in the House of Commons, Chris Bryant, Minister of State in the UK Department for Business and Trade, hailed CETA as a significant achievement that goes well beyond India's precedent in opening the door for UK businesses. Following parliamentary approval, the pact will be implemented on a mutually agreed date.
Comprehensive Tariff Reductions and Market Access
Under the agreement, 99 percent of Indian exports will enter the British market at zero duty, providing substantial benefits for Indian industries. In return, India will implement phased tariff reductions on a range of British goods:
- Scotch Whisky: Import duties will be reduced from 150 percent to 75 percent immediately, with further reduction to 40 percent by 2035.
- Automobiles: Duties will be cut to 10 percent over five years from current levels of up to 110 percent, under a quota-based liberalization system.
- Consumer Products: India has agreed to lower tariffs on British chocolates, biscuits, and cosmetics.
Indian exporters are set to gain improved access to the UK market for goods including textiles, footwear, gems and jewellery, sports goods, and toys.
Parallel Implementation of Double Contributions Convention
Alongside CETA, the two nations have signed a Double Contributions Convention (DCC) pact designed to prevent temporary workers from having to pay social security contributions in both countries. Officials indicate that both CETA and the DCC are likely to be implemented in parallel, streamlining administrative processes for cross-border employment.
Economic Impact and Leadership Endorsement
CETA aims to double bilateral trade, currently estimated at $56 billion, between India and the United Kingdom by 2030. Economists project the pact could increase trade between the two countries by approximately £25.5 billion ($34 billion) by 2040, with UK officials describing this figure as a starting point for further growth.
During his visit to India in 2025, UK Prime Minister Keir Starmer expressed strong commitment to the agreement's implementation, stating he wanted it executed as quickly as humanly possible. Speaking in Mumbai in October 2025, Starmer described the trade deal as Britain's largest post-Brexit trade achievement and emphasized his administration's dedication to its timely execution.
The agreement was formally signed during Prime Minister Narendra Modi's visit to London in July 2025. If implemented as expected in April 2026, CETA will mark a significant milestone in expanding bilateral economic cooperation and reducing tariff barriers across multiple key sectors, fostering stronger economic ties between the two democratic nations.
