India–UK FTA Likely to Take Effect in April, Social Security Deal Will Run in Parallel

The free trade agreement (FTA) between India and the United Kingdom is likely to be implemented in April this year, a government official informed news agency PTI.

"We are expecting the pact to be implemented from April this year," the government official said.

The the world's fifth and sixth largest economies also signed a Double Contributions Convention (DCC) to ensure that temporary workers are not required to pay social security contributions in both jurisdictions. The agreement will support mobility and continued social security coverage of the employees on short-term overseas assignments.

According to the report, the two agreements are likely to be implemented in parallel. The pact will require approval from the Parliament of the UK before coming into force.

In India, such agreements require clearance from the Union Cabinet. Once approved by the UK Parliament, the pact will take effect on a mutually agreed date.

The House of Commons held a debate on the India–UK Comprehensive Economic and Trade Agreement (CETA) earlier this week.

India-UK FTA

India and UK finalised the FTA in May last year and signed it on July 24, 2025. Under the agreement, the UK is set to eliminate tariffs on 99% of its tariff lines over seven years, covering nearly 100% of the trade value, benefiting sectors including textiles and apparel, agriculture and marine products, gems and jewellery, engineering and auto parts as well as leather and footwear, among others.

In return, India will also remove or reduce tariffs on 90% of UK tariff lines, covering 92% of goods imports from the UK, starting with 64% when the agreement comes into force and 85% over 10 years, boosting sectors like beverages, advanced manufacturing and clean energy.

Under the pact tariffs on Scotch whisky will be reduced from 150% to 75% with immediate effect, and further lowered to 40% by in 10 years.

CETA, overall, aims to double the $56bn trade between both the countries by 2030.

In October last year, Prime Minister Narendra Modi held talks with his British counterpart Keir Starmer that broadly focused on boosting ties in areas of trade, defence and technology.

The two countries also announced plans to supply lightweight multirole missile systems to the Indian military to strengthen its air defence capabilities, and agreed to finalise an inter-governmental pact to jointly develop maritime electric propulsion systems for India's naval platforms.