UK India Business Council Celebrates Final Go Ahead To FTA

The long-anticipated UK-India Free Trade Agreement (FTA), formally known as the Comprehensive Economic and Trade Agreement (CETA), is set to enter into force on July 15, 2026, marking a significant milestone in bilateral economic ties. The UK India Business Council (UKIBC) welcomed the announcement made on Wednesday, signaling the final go-ahead for a deal poised to dramatically reshape trade between the two nations. This breakthrough follows extensive negotiations and recent resolution of a sticking point concerning UK steel safeguard measures, solidifying a pact that both governments believe will unlock substantial economic benefits. This landmark agreement, signed in July 2025 after nearly three years of intense talks, is projected to boost bilateral trade by an estimated £25.5 billion annually and elevate the UK GDP by £4.8 billion, with India GDP seeing a £5.1 billion increase in the long run. Central to the deal are sweeping tariff reductions: the UK will eliminate duties on 99% of Indian goods, while India will significantly cut or remove tariffs on 90% of UK exports, including substantial reductions on high-value items like Scotch whisky (from 150% to 40%) and automotives (from 100% to 10% under quota). The resolution of the steel safeguard measures, which had temporarily delayed implementation, demonstrates a commitment from both Prime Ministers Narendra Modi and Keir Starmer, alongside their trade ministers Piyush Goyal and Peter Kyle, to move past hurdles and cement a strategic partnership. Beyond tariff cuts, the agreement, hailed as the most comprehensive ever agreed by India, includes provisions aimed at streamlining customs processes, improving market access for services, and enhancing business mobility. Concurrently, the Double Contribution Convention (DCC) on social security will also take effect on July 15, extending the exemption period for professionals working in each other's countries from three to five years. Businesses now have 28 days to prepare for the July 15th implementation, as both nations aim to leverage this agreement to diversify global supply chains and accelerate India 'Viksit Bharat 2047' vision.