India-UK free trade agreement to come into force in April: Report

The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to come into force in April 2026, according to an official from the Indian government. The pact awaits parliamentary ratification in the United Kingdom, while approval by the Union cabinet is required on the Indian side. Once passed, both the CETA and the Double Contributions Convention (DCC) are likely to be implemented simultaneously, enabling expanded trade and simplified employment conditions between the two nations.

A government official told news agency PTI, “We are expecting the pact to be implemented from April this year.”

The House of Commons in the UK recently debated the CETA, with Chris Bryant, Minister of State in the Department for Business and Trade, describing the agreement as a significant milestone for both countries. In his remarks, Bryant said the deal is “well beyond India’s precedent in opening the door for UK businesses”.

WHAT DOES THE INDIA-UK DEAL SAY?

The agreement stipulates that 99 per cent of Indian exports will enter the British market without duties. Conversely, India will reduce tariffs on goods such as cars and whisky, opening its market to a wider range of British products.

Under the new arrangements, tariffs on Scotch whisky will drop from 150 per cent to 75 per cent immediately and reach 40 per cent by 2035. For automobiles, import duties will decrease to 10 per cent over five years from current rates that can be as high as 110 per cent, through a gradually liberalised quota system.

India has committed to increased market access for British consumer goods, including chocolates, biscuits, and cosmetics. In return, Indian exports such as textiles, footwear, gems and jewellery, sports goods, and toys are set to gain greater entry to the UK.

The CETA aims to double the $56 billion bilateral trade volume between India, the world’s fifth largest economy, and the UK, the sixth largest, by 2030.