India-UK Free Trade Agreement takes effect on 16 July 2026

Key facts

• The India-UK Free Trade Agreement (FTA) came into effect on July 16, 2026, after four years of negotiations.
• This is India's first comprehensive trade deal with a developed country.
• India reduced tariffs on approximately 90% of products, while the UK eliminated tariffs on 99% of Indian exports.
• Tariffs on British cars were reduced from up to 110% to 30% in year one, with an annual quota starting at 20,000 vehicles.
• Tariffs on British alcoholic beverages were reduced from 150% to 75% initially, and to 40% by year ten.
• For the first time in an Indian FTA, a system of self-declaration of origin by UK exporters was allowed.
• The deal exempts Indian professionals from contributing to UK National Insurance for five years.
• The labour and environment chapter of the agreement is non-binding, considered a win for India.