India, UK push to operationalise FTA by April, says Commerce Secy

Accelerated Push for India-UK Trade Pact Implementation

India and the United Kingdom are intensifying efforts to bring their landmark free trade agreement into effect by April 2026. Commerce Secretary Rajesh Agrawal recently confirmed that both nations are making a genuine push to meet this timeline, following the signing of the Comprehensive Economic and Trade Agreement, or CETA, on July 24, 2025. This pact was finalized during Prime Minister Narendra Modi's visit to London, signaling a new chapter in economic ties between the two countries. The agreement awaits final ratification by the UK Parliament, including debates in the House of Commons and House of Lords, after which it can roll out on a mutually agreed date. In India, such deals receive clearance from the Union Cabinet. Officials express optimism that the process will conclude swiftly, paving the way for immediate benefits.

This development comes amid growing anticipation from businesses on both sides, eager to capitalize on reduced barriers. Current bilateral trade hovers around 56 to 60 billion dollars, with ambitions to double it by 2030. Economists project the deal could add as much as 34 billion dollars to trade volumes by 2040, fostering growth in diverse sectors. The parallel implementation of a Double Contributions Convention aims to streamline fiscal matters, preventing overlaps in social security payments for cross-border workers.

Key Benefits and Tariff Reductions Unveiled

Under CETA, a staggering 99 percent of Indian exports will enter the UK market at zero duty, a game-changer for labor-intensive industries. Sectors like textiles, leather, footwear, marine products, sports goods, toys, gems, and jewelry stand to gain significantly from this access. Manufacturing areas such as engineering goods, auto components, engines, and organic chemicals will also see improved market entry. In exchange, India has agreed to lower tariffs on British imports, including luxury cars, Scotch whisky, chocolates, biscuits, and cosmetics.

For instance, duties on Scotch whisky will drop from 150 percent to 75 percent right away, phasing down further to 40 percent by 2035. Automobile import tariffs in India, currently up to 110 percent, will reduce to 10 percent over five years through a quota system. Indian manufacturers get quota-based access for electric and hybrid vehicles in the UK. These changes are designed to balance opportunities, boosting exports while opening markets selectively. Commerce Secretary Agrawal highlighted the momentum, stating, This reflects the collaborative spirit driving the initiative.

"I think both sides are working to operationalize it as fast as possible. As some stories have come in the news that it may get operationalized in April, we are making an effort towards that. But I don't know whether that is the date or it will happen beyond that. But we are trying. Our genuine effort on both sides is to see if we can meet the April deadline."

Mobility Boost and Broader Economic Implications

Beyond tariffs, the agreement introduces sweeping mobility provisions, marking the UK's most comprehensive post-Brexit deal in this area. Business visitors can now enjoy 90-day visa-free stays for activities like market research, trade fairs, or after-sales service. Intra-corporate transferees qualify for four-year visas with simplified documentation and no cooling-off periods. Mutual recognition of professional qualifications in fields like engineering, architecture, and accountancy will ease professional mobility. Dependents of such workers can take up employment without separate permits, subject to salary thresholds.

These measures are hailed as a boon for companies with operations across borders, though caveats apply, such as a six-month prior employment requirement and adherence to UK salary lists. UK Prime Minister Keir Starmer, during his 2025 India visit, urged swift implementation "as soon as humanly possible." The pact positions India and the UK—the world's fifth and sixth largest economies—as key partners in global trade. It aligns with India's export-led growth strategy and the UK's post-Brexit outreach. Challenges remain, including parliamentary hurdles, but the April target underscores commitment to timely execution.

In wrapping up, the India-UK CETA promises transformative trade gains, tariff relief, enhanced mobility, and doubled commerce by 2030, with operationalization eyed for April 2026 pending final approvals. This deal strengthens enduring ties and economic resilience for both nations.