File Photo / IANS/Lindy Cameron's X account

The United Kingdom (UK) and India announced on June 17 that the trade deal signed by the two countries will come into force from July 15, about a year after the deal was signed last year.

Termed as the India-UK Comprehensive Economic and Trade Agreement (CETA), the deal was officially signed on July 24, 2025. The department for Business and Trade of the UK said in a statement that businesses now have 28 days to prepare for the entry-into-force and will be able to trade under its terms from July 15th, "following strenuous efforts to prepare UK and Indian systems."

It further said that the deal which is "the most comprehensive ever agreed by India," will boost UK GDP by 4.8bn British Pounds, real wages by 2.2bn British Pounds and bilateral trade by 25.5bn British Pounds every year in the long run.

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"Industries across the UK will benefit, with whisky tariffs cut from 150 per cent to 40 per cent, automotives from 100 per cent to 10 per cent under a quota and cosmetics will see tariffs of up to 22 per cent eliminated either from day one or after 10 years," the statement said.

Reacting to the development, Indian Prime Minister Narendra Modi posted on X that it was a historic milestone for India-UK relations.

"Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will enter into force on July 15 2026. This agreement will significantly boost our bilateral trade and investment," Modi said.
Modi further said that "the deal will also unlock numerous opportunities for Indian farmers, workers, MSMEs, startups and innovators and contribute meaningfully to the realisation of Viksit Bharat 2047," he said, sharing a picture of himself with his British counterpart Keir Starmer.

The salient features of the deal include that India will bring down tariffs on whisky imports from Britain from 150 per cent to 40 per cent by the deal's 10th year, and tariffs on British automotives would be brought down from as high as 100 per cent to 10 per cent under a quota.

On the British side, the country will bring down tariffs for Indian imports like footwear, clothes and certain eatables.

The announcement comes days after Indian officials had hinted that they may reconsider easing tariffs on whisky from Britain if the latter imposed curbs on steel imports from India.

Britain's new steel trade measures are set to come into effect from July 1 onwards and they aim to shield the country's domestic industry from a surge in global supply.

As part of the new measures, Britain will sharply reduce tariff-free quotas for steel and impose steep duties on shipments beyond those limits from July, as per news reports.

India on June 17 said that following constructive deliberations regarding the UK’s upcoming steel measures effective July 1, 2026, "both sides mutually agreed to protect commercial interests, minimize market disruptions, and ensure an overall balanced and stable trading environment for exporters."

The country's Ministry of Commerce further said that 85 per cent of India’s exports are out of the steel measures.

"On the lines under the steel measures India’s interest has been protected through a mix of CSQ, residual quota and access under Authorised Use Scheme (AUS)," it said.

The British government's announcement on Wednesday however made no reference to any separate pact with India on steel.

India's Ministry of Commerce has said that with the entry into force, Indian exporters will benefit from the complete elimination of UK tariffs across several key sectors.

"Tariffs of up to 70 per cent on processed food products, up to 21.5 per cent on marine products, up to 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear products, up to 12 per cent on textiles and clothing, and up to 8 per cent on chemicals and pharmaceutical products will be reduced to zero. 

The immediate duty-free access secured under CETA is expected to significantly enhance the competitiveness of Indian exports in the UK market, generate new opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India's integration into global value chains," it said.

 

Discover more at New India Abroad.