The India-UK free trade agreement, finalized in July last year, is reportedly expected to take effect from the second week of May. On July 24, 2025, India and the UK entered into the Comprehensive Economic and Trade Agreement (CETA), under which 99 percent of Indian exports will enter the British market at zero duty, while tariffs on British products, such as cars and whisky, will be reduced in India.

The two countries have also signed the Double Contributions Convention (DCC) pact to ensure temporary workers would not have to duplicate social levies in either country. Both pacts are likely to be implemented in parallel. CETA aims to double the $56 billion trade between the two economies by 2030.

While India has opened its market to various consumer goods, like chocolates, biscuits, and cosmetics, it will gain greater access to export products, such as textiles, footwear, gems and jewellery, sports goods, and toys. Under the agreement, tariffs on Scotch whisky will drop from 150% to 75% immediately, and then decrease further to 40% by 2035.On automobiles, India will reduce import duties from as high as 110% to 10% over five years under a gradually liberalised quota system. In return, Indian manufacturers will be granted access to the UK market for electric and hybrid vehicles within a quota framework.