The India-UK Comprehensive Economic and Trade Agreement officially took effect on July 15, 2026, marking the culmination of negotiations that began four years ago. Tariffs on UK whisky exports to India dropped from 150% to 40%, car duties fell from over 100% to 10%, and 99% of Indian goods now enter the UK duty-free.
What the deal actually does
Under the new agreement, 90% of Indian tariffs are undergoing liberalization. Scotch whisky, long priced out of mainstream Indian retail by a 150% tariff, now faces a 40% levy. For India, with 99% of its goods gaining duty-free entry into the UK, Indian manufacturers and exporters have a much more competitive position in a G7 market. Textiles, pharmaceuticals, agricultural products all stand to benefit.
The formal signing happened on July 24, 2025, after an agreement in principle was reached in May of that year. Negotiations kicked off in January 2022, which means this deal took roughly three and a half years to hammer out.
The GDP math and what it signals
