India and the United Kingdom on Wednesday announced that their bilateral Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, with Prime Minister Narendra Modi and his British counterpart Keir Starmer jointly confirming the date in what London described as the fastest implementation of a trade deal after signing in British history.
In a social media post, Modi described the agreement as a “historic milestone for India-UK relations” and said the agreement will “significantly boost bilateral trade and investment” and open up opportunities for Indian farmers, workers, SMEs, startups and innovators.
“In a major step for India’s global economic engagement, India and the United Kingdom today announced that the Comprehensive Free Trade Agreement will come into force on July 15, 2026,” the Indian Commerce Ministry said in a statement.
Implementation of the FTA, signed on 24 July 2025, was delayed first due to regulatory approvals and later due to London’s move to protect its domestic industry by imposing steel safeguards. This became a sticking point because the UK’s move would have allowed duty-free access to only 60% of Indian steel by volume in Britain from July 1. After negotiations, London agreed to raise India’s duty-free quota to 85%.
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The Ministry of Commerce confirmed this development, saying that the two sides “successfully reached a historic consensus to protect and promote bilateral steel trade.”
The issue was resolved after India warned British negotiators that any such afterthoughts could force New Delhi to reconsider tariff concessions it had offered the UK under the CETA on products such as Scotch whisky.
“Following constructive deliberations on the UK’s upcoming steel measures from 1 July 2026, the two sides mutually agreed to protect commercial interests, minimize market disruptions, and ensure a generally balanced and stable trading environment for exporters,” the ministry said. “85% of India’s exports are out of steel measures. On the lines given in steel measures, India’s interests have been protected through a combination of steel and quality measures. [country specific quota]The remaining quota and access are under the Approved Use System (AUS), it added.
The deal is expected to expand bilateral trade by £25.5 billion annually in the long term and lift UK GDP by £4.8 billion and Indian GDP by £5.1 billion annually. It will free 99% of UK tariffs and 90% of Indian tariffs.
The British High Commission (BHC) described it as “the most comprehensive trade agreement that India has ever brought into force.”
The tariff reductions apply to a wide range of sectors from day one. Scotch whiskey duty drops from 150% to 40%; Customs tariffs on cars are reduced from 100% to 10% under the quota; Cosmetics fees of up to 22% are being waived either immediately or in stages.
The UK will also reduce tariffs on Indian clothing, footwear and some food products, cuts which, BHC said, could translate into cheaper prices and more choice for British consumers.
Commerce Minister Rajesh Agrawal had said on Monday that a team of Indian trade officials was in London to work on resolving issues that emerged after the signing, the most important of which are British steel safeguards and the UK Carbon Border Adjustment Mechanism (CBAM).
British Business and Trade Secretary Peter Kyle said: “We are bringing our landmark trade deal with India into force as quickly as possible because we want businesses in both India and the UK to immediately feel the benefits of the 99% of UK tariffs and 90% of Indian tariffs being liberalized.” “Trade will be cheaper, faster and easier for businesses on both sides.” He said the deal would take the £48bn bilateral trade relationship “to the next level”.
Along with the CETA, the social security agreement – referred to as the Dual Contribution Agreement (DCC) – will also enter into force on July 15, the Commerce Ministry said.
The DCC extends the period from 36 months to 60 months, during which UK citizens working in India and Indian professionals in the UK contribute to their household social security schemes without incurring dual liability.
The arrangement, which applies to highly skilled professionals on pre-existing visa routes, mirrors similar agreements between the UK, South Korea, Japan and Canada.
The activation of the partnership between India and the United Kingdom comes amid a wave of trade diplomacy for New Delhi. On the sidelines of the G7 summit in Evian, Modi met European Council President Antonio Costa and European Commission President Ursula von der Leyen on Wednesday to push for faster progress on the India-EU free trade agreement – concluded less than five months ago – with both sides indicating that the agreement will be signed by the end of the year.
Costa and von der Leyen described it as the “mother of all trade deals” and said the two sides would also accelerate work on an investment and promotion agreement for the India-Middle East-Europe Economic Corridor (IMEC).
The previous day, also at Evian, Modi and Canadian Prime Minister Mark Carney agreed to conclude FTA negotiations by the end of the year and announced the launch of the General Information Security Agreement – a framework to enable the sharing of sensitive defense intelligence – with the two leaders expressing satisfaction with the pace of reset of bilateral relations after several turbulent years.
