India-UK Free Trade Pact Likely To Be Implemented In April

Last Updated:February 15, 2026, 17:43 IST

New Delhi and London signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025.

The India-UK free trade agreement, signed in July last year, is likely to be implemented in April 2026, news agency PTI reported, citing a government official.

“We are expecting the pact to be implemented from April this year," the official said, adding that both countries are working towards completing the required procedures.

The two countries have also signed the Double Contributions Convention (DCC), which will ensure that temporary workers do not have to pay social security contributions in both countries simultaneously. The official said the DCC is also likely to be implemented in parallel with the trade agreement.

Before the agreement comes into force, it needs approval from the UK Parliament. In India, such trade agreements require approval from the Union Cabinet. Once cleared by the British Parliament, the pact will be implemented on a mutually agreed date.

The UK’s House of Commons held a debate on the India-UK CETA earlier this week. Chris Bryant, Minister of State in the Department for Business and Trade, said the agreement was a significant achievement and goes well beyond India’s previous commitments in opening its market to UK businesses.

The British Parliament is currently ratifying the agreement, with debates in both the House of Commons and the House of Lords, along with reviews by relevant committees.

New Delhi and London signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. Under the pact, 99% of Indian exports will enter the British market at zero duty, while India will reduce tariffs on British products such as cars and Scotch whisky.

The deal will significantly improve market access and will boost bilateral trade by around $34 billion annually. The FTA is projected to double bilateral trade by 2030, from the current $60 billion mark.

The trade deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99% of tariff lines (product categories) covering almost 100% of the trade values.

What Are The Key Features Of The Agreement?

The India-UK FTA is designed to cover more than just trade in goods. It includes commitments on services, investment facilitation, labour mobility, public procurement, and cooperation on technical standards. However, certain sectors such as agriculture and sensitive financial services have been kept out of its purview for now.

For Indian businesses, especially small and medium enterprises, the removal of tariffs offers a significant competitive edge. In the textiles sector, where Indian exports often face stiff competition from countries like Bangladesh and Vietnam, the new deal is expected to level the playing field. Indian exporters will now have better pricing power in the UK market, particularly in garments and home furnishings.

The gems and jewellery sector, centred in cities like Surat and Mumbai, is expected to benefit from easier access and lower costs, making Indian exports more attractive in the UK’s high-value market. Similarly, sectors like leather, handicrafts, and engineering goods are likely to see increased order volumes as duties drop and logistical barriers ease.

Crucially, the agreement simplifies regulatory standards for various products. Technical barriers to trade, such as duplicative testing requirements or product certifications, will now be streamlined. This will reduce compliance costs and speed up market access for Indian manufacturers.

(With inputs from agencies)

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