UK-India Deal Fixed for 15th July Launch

The UK and India have confirmed that their historic free trade agreement will enter into force on 15 July. Formally known as the Comprehensive Economic and Trade Agreement (CETA), the deal was originally signed in July 2025. Following high-level talks at the G7 Summit in Evian, Sir Keir Starmer and Prime Minister Narendra Modi resolved eleventh-hour complications surrounding steel import safeguards to secure the final timeline.

With the launch date established, businesses have a strict 28-day window to finalise administrative procedures to secure preferential terms from day one.

Unlocking Bilateral Trade 

The Department for Business and Trade (DBT) has hailed the pact as the most comprehensive trade agreement India has ever signed, and the UK’s most significant bilateral deal since leaving the EU. Government forecasts project the agreement will expand annual bilateral trade by £25.5 billion. Business and Trade Secretary Peter Kyle emphasised that the deal is expected to deliver a massive £400 million reduction in tariffs within the first year alone, boosting British competitiveness in the world’s fastest-growing consumer market.

Key Tariff Reductions 

The agreement liberalises 99% of UK tariff lines and 90% of Indian tariff lines. British businesses exporting to India will benefit from immediate and phased duty rollbacks on key goods:

• Spirits: The 150% Indian tariff on Scotch whisky will immediately fall to 75%, phasing down to 40% over ten years.

• Automotives: Tariffs on British-made vehicles will drop from 100% to 10% under a new tariff-rate quota.

• Cosmetics: Duties of up to 22% on British beauty brands will be entirely eliminated over a ten-year transition.

• Advanced Manufacturing: Tariffs on medical devices and aerospace components will phase down to zero.

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Conversely, British retailers will see lower costs on Indian clothing, footwear, and processed foods, expanding choice for UK consumers.

Overcoming the Steel Logjam 

The July launch follows intense negotiations to resolve a dispute over the UK’s impending steel import regulations, taking effect on 1 July. The new UK rules threatened to cut duty-free steel import quotas by 60%. Following bilateral talks, India's Ministry of Commerce confirmed a consensus had been reached to protect trade interests. Roughly 85% of Indian steel exports will remain unaffected by the safeguards through country-specific quotas and an Authorised Use Scheme.

Mobility Upgrades 

The treaty also includes the UK-India Double Contributions Convention Agreement. Under this framework, the period during which professionals can work abroad while maintaining home-country state pension entitlements extends from 36 to 60 months, eliminating dual social security taxation.

Next Steps for Businesses 

Preferential trade terms are not automatic. To utilise tariff reductions on 15 July, British exporters must register with HMRC and prepare rules-of-origin declarations. The DBT is launching a nationwide roadshow this week to assist firms with compliance.

Ensure your product classification is accurate to secure preferential tariff treatment under the new UK-India deal.

Contact the team today at international@gmchamber.co.uk if you need support