UK-India FTA enters into force on 15 July 2026

• Milestone trade deal with India to come into effect next month, marking quickest ever turnaround following signature
• Businesses encouraged to prepare for entry-into-force to feel the benefits of massive tariff cuts
• UK agreement will be the most comprehensive trade deal India has ever brought into force

The UK and India have today (Wednesday 17th June) announced their landmark trade deal will enter into force next month so working people and businesses can benefit.

Businesses, who now have 28 days to prepare for the entry-into-force, will be able to trade under its terms from July 15th, following strenuous efforts to prepare UK and Indian systems. 

The deal, which is the most comprehensive ever agreed by India, could boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral trade by £25.5bn every year in the long run.

Industries across the United Kingdom will benefit, with whisky tariffs cut from 150% to 40%, automotives from 100% to 10% under a quota and cosmetics will see tariffs of up to 22% eliminated either from day one or after 10 years.

Business and Trade Secretary Peter Kyle said: 

“We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone. 

“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.

“This week our UK-India Roadshow will begin travelling across all four nations to promote the incredible new opportunities this deal offers.”

India has never implemented a deal of this size, meaning the UK will have an immediate competitive advantage over other markets.

The UK will cut tariffs on Indian goods coming into the country such as clothes, footwear, and some food products. Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country.

We have extended the benefit for UK nationals moving to India to work and continue to build entitlement to a UK State Pension from 36 months to 60 months. They will continue to pay National Insurance Contributions during that period, without also having to pay social security contributions in India.

This is reciprocal for both British and Indian professionals and will be applicable to highly skilled professionals on pre-existing visa routes. This is in line with our arrangements with other countries such as Korea, Japan, and Canada.

This will be achieved through the UK-India Double Contributions Convention Agreement, which will enter into force at the same time as the UK-India FTA.

To benefit from the tariff reductions, businesses must register with HMRC. We would now encourage businesses to use the next 28 days to register and ensure they are fully prepared to reap the benefits of this deal.

Understanding the UK India FTA

The Hull and Humber Chamber is running a series of UK India FTA awareness sessions designed to help UK exporters and importers understand the key provisions of the agreement, how to establish whether their goods qualify for preferential tariff rates, and what steps are needed to claim preference compliantly. Click here for full details.