Overview
- An Indian government official told PTI the agreement is likely to take effect in April 2026, while Commerce Secretary Rajesh Agrawal said both sides are making a genuine effort to meet that timeline without confirming the date.
- UK parliamentary scrutiny is underway with debates in the House of Commons and House of Lords and committee reviews, and Minister Chris Bryant called the pact a significant achievement for UK businesses.
- Once implemented, about 99% of Indian exports would enter the UK at zero duty, while India would phase in tariff cuts on key UK goods including cars and Scotch whisky.
- The tariff schedule reported by officials includes Scotch duties falling from 150% to 75% on entry into force and to 40% by 2035, and automobile import duties declining to 10% over five years under a quota system.
- Alongside the trade pact, the Double Contributions Convention would exempt Indian employees on temporary UK assignments and their employers from UK social security payments for up to three years, with sectors such as textiles, footwear, gems and jewellery, and engineering seen as major beneficiaries as both countries aim to roughly double current trade by 2030.