NEW DELHI: India and the United Kingdom are anticipating the implementation of their comprehensive free trade agreement from the second week of May, according to an official familiar with the development. The pact, officially signed in July last year, aims to significantly boost bilateral trade between the two nations.
Information was available with The Chenab Times indicating that the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, finalized on July 24, 2025, is set for an early May rollout. Under the terms of the agreement, approximately 99 percent of Indian export goods will gain duty-free access to the British market. Concurrently, tariffs on key British products, including automobiles and alcoholic beverages like whisky, are slated for reduction within India.
The official expressed optimism regarding the timeline, stating, “We are expecting the pact to be implemented from the second week of May.” The implementation of CETA is anticipated to run in parallel with the Double Contributions Convention (DCC) pact, which has also been agreed upon by both countries. The DCC is designed to prevent temporary workers from facing duplicate social levies in either nation, streamlining cross-border employment.
The overarching goal of CETA is to double the current trade volume between India and the UK, which stood at USD 56 billion, by the year 2030. The agreement outlines significant market access for a range of Indian products. India will see increased opportunities for exports in sectors such as textiles, footwear, gems and jewellery, sports goods, and toys. In return, India has committed to opening its market to various UK consumer goods, including chocolates, biscuits, and cosmetics.
Specific tariff reductions are a key feature of the trade deal. Tariffs on Scotch whisky imported into India will experience an immediate reduction from the current 150 percent to 75 percent. This will be followed by a further decrease to 40 percent by 2035, making the popular spirit more accessible to Indian consumers. Similarly, the automotive sector will see a gradual liberalisation of import duties. India plans to reduce import duties on automobiles to 10 percent over a five-year period, a substantial decrease from the current rates which can reach up to 110 percent, implemented through a quota system.
For Indian automobile manufacturers, the agreement promises enhanced access to the UK market for electric and hybrid vehicles. This access will also be managed within a specified quota framework, fostering a balanced trade dynamic in this crucial sector. The parallel implementation of both CETA and the DCC is expected to create a more conducive environment for businesses and workers engaged in bilateral trade and movement between India and the UK.
The Chenab Times News Desk