The countdown for FTA between India and Britain has started. According to an official, the India-UK Free Trade Agreement, signed in July last year, is likely to come into effect from the second week of May. India and the UK signed a Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025, under which 99 percent of Indian exports will enter the British market without any duty (zero duty), while tariffs on British products in India, such as cars and whiskey, will be reduced. The official said that we hope that this agreement will come into effect from the second week of May.
What is the target of CETA?
Both countries have also signed the Double Contributions Convention (DCC) agreement to ensure that temporary workers do not have to pay social levies twice in either country. The official said that both the agreements are likely to be implemented simultaneously. CETA aims to double trade between the two economies to $56 billion by 2030. While India has opened up its markets for various consumer goods including chocolates, biscuits and cosmetics, it will also get greater market access for export products such as textiles, footwear, gems and jewellery, sporting goods and toys.
British whiskey will be cheaper
Under this agreement, the tariff on Scotch whiskey will be reduced from 150 percent to 75 percent immediately, and further reduced to 40 percent by 2035. In the case of automobiles, India will reduce import duty from the current rate of 110 percent to 10 percent in five years under a gradually liberalizing quota system. In return, Indian manufacturers will get access to the UK market for electric and hybrid vehicles under a quota system.