India-UK landmark free trade pact to come into force from July 15
New Delhi, Jun 17, 2026
Alongside the trade pact, the Double Contribution Convention will also take effect, easing social security obligations for temporary cross-border workers
India’s free trade agreement (FTA) with the UK will kick in from Jul 15, nearly a year after the two sides signed the landmark deal in London. India’s Double Contribution Convention (DCC), signed along with the FTA, will also take effect on the same date.
“It is a major stride for India's global economic engagement with the simultaneous enforcement of the India-UK Comprehensive Economic and Trade Agreement (Ceta) and the Double Contribution Convention (DCC) on 15th July, 2026,” Commerce Minister Piyush Goyal said in a post on X.
The deal will take effect after considerable ebb and flow following hurdles to the implementation after the UK announced steel safeguard measures. Both sides have held several rounds of discussions, including a visit to New Delhi by UK’s Business and Trade Secretary Peter Kyle earlier this month to iron out the sticking points and implement the deal. The announcement of the implementation follows a meeting between Prime Minister (PM) Narendra Modi and his British counterpart Kier Starmer in France on the sidelines of the G7 Summit.
“This agreement will significantly boost our bilateral trade and investment. It will also unlock numerous farmers, workers, MSMEs, startups and innovators, and contribute meaningfully to the realisation of Viksit Bharat 2047,” Modi said in a post on X.
According to the commerce ministry, the two sides have agreed to keep 85 per cent of India’s exports out of the steel measures. “On the lines under the steel measures India’s interest has been protected through a mix of country-specific quota (CSQ), residual quota, and access under Authorised Use Scheme (AUS),” the ministry said in a release.
In March, the UK government announced it would lower tariff-free steel import quotas by 60 per cent to safeguard the domestic industry from dumping. Starting in July, steel shipments above the quota limit will attract a 50 per cent duty in the UK. The UK’s import restriction on steel was seen as a non-tariff barrier by India.
To further sweeten the offer, the UK has also offered to increase the exemption period under its DCC with India to five years from three years. The DCC facilitates exemption to temporary cross-border assignees and their employers from paying double social security contributions.
The UK has committed tariff concessions on 99 per cent tariff lines, covering India’s entire trade basket, under the trade deal. Following the rollout of the deal, tariffs of up to 70 per cent on processed food products, up to 21.5 per cent on marine products, up to 18 per cent on engineering goods and auto components, up to 16 per cent on leather and footwear products, up to 12 per cent on textiles and clothing, and up to 8 per cent on chemicals and pharmaceutical products will drop to zero.
Meanwhile, India has opened 89.5 per cent of its tariff lines, covering 91 per cent of UK’s exports. “Businesses, which 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 UK’s Department for Business and Trade said.
Some of the key offerings by New Delhi include duty concessions on Scotch whisky from 150 per cent to 75 per cent immediately, and to 40 per cent over the next 10 years. India has also committed to lower tariffs on automotive imports to 10 per cent from over 100 per cent under quotas on both sides.
“This week, our UK-India Roadshow will begin travelling across all four nations (England, Scotland, Wales, and Northern Ireland) to promote the incredible new opportunities this deal offers,” the UK government said.
Both sides aim to double the bilateral trade of around $60 billion by 2030.
[The Business Standard]
