India-UK Free Trade Agreement to take effect from July 15

The India-UK Free Trade Agreement is scheduled to enter into force on 15 July 2026. The agreement was signed on 24 July 2025 after both sides reached agreement in principle on 6 May 2025.

Agreement timeline

The India-UK Free Trade Agreement was formally signed by India’s Commerce Ministry and UK officials on 24 July 2025. The two governments confirmed on 17 June 2026 that domestic and procedural formalities for implementation had been completed.

Tariff changes under the pact

The agreement includes tariff reductions on several goods traded between India and the United Kingdom. India’s whisky tariff is set to fall from 150% to 40%, and automotive tariffs will reduce from 100% to 10% under a quota mechanism. The United Kingdom will reduce tariffs on Indian exports such as clothing, footwear, and certain food products. The agreement also covers trade in goods and market access measures between the two countries.

Trade and economic provisions

The agreement is expected to increase bilateral trade by £25.5 billion annually in the long run. It is also projected to add £4.8 billion to the UK economy. Businesses in both countries have 28 days from 17 June 2026 to prepare for implementation. Trade under the new terms will begin from 15 July 2026.

Important Facts for Exams

• The India-UK Free Trade Agreement was signed on 24 July 2025.
• The agreement in principle was reached on 6 May 2025.
• India’s whisky tariff is set to reduce from 150% to 40%.
• Automotive tariffs will reduce from 100% to 10% under a quota mechanism.