Outlook Business Desk
India-United Kingdom Free Trade Agreement (FTA), officially called the Comprehensive Economic and Trade Agreement (CETA), will come into effect on July 15, 2026, marking a major step in strengthening economic ties and expanding trade between the two countries.
The agreement goes beyond goods and covers services, digital trade, investments, intellectual property, government procurement and professional mobility. It is designed to expand market access and create smoother trade flows between India and the United Kingdom.
Alongside the trade pact, the Double Contribution Convention (DCC) will also take effect. It removes the requirement for Indian professionals working temporarily in the UK to pay social security contributions in both countries, offering financial relief during assignments.
Import duty on Scotch whisky from the UK will reduce in phases from 150% to 40%. This gradual reduction is expected to make premium whisky brands more affordable for Indian consumers over time, depending on retail pricing adjustments.
Tariffs on selected British automobiles will fall from 100% to 10% under a quota system. This change may make luxury vehicles from the Uk more competitively priced in India, although final benefits will depend on quotas and dealer pricing structures.
Cosmetics, beauty products and specialty food items from the UK will see reduced or eliminated duties. Some categories will get immediate relief while others will follow phased reductions over the next decade, increasing consumer choice in the Indian market.
Indian exporters will gain zero-duty access to the UK market for most goods. This includes textiles, garments, leather products, footwear, engineering goods, auto components, seafood, chemicals and pharmaceuticals, significantly improving export competitiveness.
The United Kingdom will open 137 service sub-sectors for Indian firms. Key beneficiaries include IT services, finance, consulting, telecom, healthcare and education. The agreement also improves mobility pathways for professionals, investors and service providers.
Around 1,800 Indian professionals including chefs, yoga instructors and classical musicians will receive annual mobility opportunities. The agreement also supports smoother entry for business visitors, intra-company transferees and independent professionals.