Historic India-UK tradepact comes into force
   Date :16-Jul-2026

Historic India 
 
NEW DELHI :
 
THE UK-India Free Trade Agreement (FTA), one of the biggest trade deals of modern times, under which a host of domestic goods will enter at zero duty in the British market, came into force on Wednesday.. Commerce and Industry Minister Piyush Goyal said that a social security agreement too has been operationalised from July 15. “With the coming into force of the Comprehensive Economic and Trade Agreement (CETA) and the Agreement on Social Security, our economic linkages are going to get even deeper,” Goyal said in a social media post. The CETA will give fresh momentum to Indian farmers, entrepreneurs and MSMEs.
 
Now, 99 pc of Indian goods entering the UK and 90 pc of UK goods entering India will either be duty-free or subject to reduced tariffs
 
Several vibrant sectors will gain stronger access to the UK market, he said. It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent, he added. The social security agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises, he said. UK-India total trade, worth £48 billion in 2025, is set for an immediate boost, with consumers now enjoying cheaper, quicker, and easier access to the best of British and Indian products and services across both countries, as per an official release. To celebrate this historic occasion, a special package of select British goods arrived at the British Deputy High Commission in Mumbai aboard a British Airways flight. The package was unveiled by Harjinder Kang, Trade Commissioner for South Asia, and David Wright, British Airways’ GM in India, to signal arrival of new opportunities unlocked for both the countries. The package contained goods from the UK benefiting from reduced tariffs, including cosmetics, food products, and alcoholic beverages. Harjinder Kang, Trade Commissioner for South Asia and British Deputy High Commissioner for Western India, said: “This is a watershed moment for the UK-India partnership. As the landmark trade deal comes into force, what better than having select British products arriving on one of the very first UK flights into India this morning, with thanks to the support of British Airways. Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker, and easier trade. We are all excited to take full advantage of it.” David Wright, British Airways’ General Manager in India, said: “India is one of British Airways’ most important markets, and we have a long history of connecting people, businesses, and cultures across the UK and India.
 
With 63 flights each week, increasing to 70 by the end of summer, we play an important role in strengthening economic and cultural ties between our two countries. It’s a ‘new gold standard’ of trade deals: UK High Commissioner: THE UK-India free trade agreement that came into force on Wednesday is a “new gold standard” of trade deals and it sends a message to the rest of the world that rules-based order works, British High Commissioner Lindy Cameron said. The mega trade deal, officially known as the Comprehensive Economic and Trade Agreement (CETA), secures zero-duty market access for nearly 99 per cent of India’s exports. It is expected to help the Indian economy in sectors like textiles, leather, gems and jewellery, engineering goods, marine products, chemicals and processed foods. A bilateral social security agreement too has been operationalised along with the trade deal. Cameron, interacting with the media, said India and the UK have “unlocked the combined economic might of two global economic powerhouses”. It sends a message to the rest of the world that the rules-based order works, she said, adding the trade pact is the new gold standard of trade deals. It is a force multiplier and template for future trade agreements, she said. In sectoral terms, the India-UK trade deal brings really sweeping benefits for a wide range of sectors, the High Commissioner said. “The UK-India trade deal brings sweeping benefits for a wide range of sectors. From today, import duty on Scotch whisky has been cut from 150 per cent to 75 per cent which should make a really significant difference to the price the consumer pays,” she said. Cameron also said that import duties on premium UK-built cars will also begin to fall from over 110 per cent to 10 per cent, making iconic British cars cheaper for Indian consumers.