New Delhi: The India-UK free trade agreement (FTA) and the social security deal are set to be operationalised from July 15, 2026, following talks between Prime Minister Narendra Modi and his UK counterpart Keir Starmer in Evian on Wednesday, according to the Times of India.
Key tariff reductions
The FTA, finalised in May 2025, eliminates tariffs on 99% of exports from India, opening services sectors and easing visa rules, the source reported. Commerce & industry minister Piyush Goyal stated that the deal systematically dismantles long-standing tariff walls, allowing Indian sectors like textiles, leather, marine, engineering, and processed food to compete duty-free.
For Indian consumers, the deal brings significant duty cuts:
| Product | Current duty | New duty |
|---|---|---|
| Scotch whisky | 150% | 40% |
| Automobiles | 100% | 10% (with quotas) |
| Cosmetics | 22% | 0% |
Steel measures resolved
The UK's decision to impose tariffs on steel products had initially irked New Delhi, delaying the rollout. A senior government official told Times of India: “We have got an even solution that balances the interests of our stakeholders on the issue of steel.” The commerce department elaborated in a statement:
“Following constructive deliberations regarding the UK’s upcoming steel measures effective July 1, 2026, both sides mutually agreed to protect commercial interests, minimise market disruptions and ensure an overall balanced and stable trading environment for exporters. 85% of India’s exports are out of the steel measures. On the lines under the steel measures India’s interest has been protected through a mix of CSQ (country specific quotas), residual quota and access under Authorised Use Scheme.”
Impact on Indian exporters
Minister Piyush Goyal highlighted the immediate benefits: “By securing immediate duty-free access on 99% of our tariff lines, we have systematically dismantled long-standing tariff walls. This will effectively level the playing field, allowing our textiles, leather, marine, engineering and processed food sectors to compete with no disadvantage and supply their world class products. Crucially, this structure is built on absolute economic security; stringent exclusion lists are actively deployed to insulate our sensitive agricultural and rural economies from import volatility. Simultaneously, by exempting our professionals from double insurance contributions, we are protecting the financial interests of our talent pool.”
Broader trade context
The implementation comes as attention returns to US tariffs, with the deadline for the end of the 10% additional levy barely five weeks away and a new tariff structure to be announced by the Trump administration, the source noted.
Sources:
