UK-India free trade agreement is now in force

Describing it as one of the biggest trade deals of modern times, the Government has confirmed that the UK-India Free Trade Agreement (FTA) came into force on 15 July 2026.

It is now known as the Comprehensive Economic and Trade Agreement (CETA) and it is expected to lead to cheaper, quicker and easier access to the best British and Indian products and services across both countries.

With UK and India total trade already worth £48 billion in 2025, the new CETA will mean that 99% of Indian goods entering the UK and 90% of UK goods entering India will either be duty free or reduced in tariffs.

HM Trade Commissioner for South Asia, Harjinder Kang, said: “Our landmark trade deal is designed to benefit businesses and consumers from day one with cheaper, quicker and easier trade. We are all excited to take full advantage of it.”

A wide range of sectors on both sides are set to benefit including automotive, manufacturing, consumer goods, creative industries and medical technology.

In the long run, the deal is expected to boost bilateral trade by £25.5 billion, Indian GDP by £5.1billion and UK GDP by £4.8billion every year.

More details of the CETA can be found here.

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