The India-UK Free Trade Agreement (FTA) came into force on July 15, 2026, nearly a year after it was signed in London on July 24, 2025 by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, according to the Economic Times.
Under the agreement, 99% of India's tariff lines receive duty-free entry into the UK. In return, India will lower import duties on select British goods in stages over five to ten years rather than immediately.
Automotive Tariff Reductions
Premium British cars, including brands such as Rolls Royce, Aston Martin, McLaren, Jaguar, and Land Rover, are expected to benefit. Petrol and diesel models receive concessional treatment from the outset, while electric, hybrid, and hydrogen vehicles get preferential access only from the sixth year onward, providing India's domestic EV makers about five years of protection.
Over the first 15 years, India will allow import of 3.78 lakh fully built conventional engine passenger vehicles from the UK at concessional duty. UK trucks also see duty cuts: the existing 44% duty on fully built trucks falls to 8.8% by the fifth year within a quota, and the annual quota rises from 2,500 to 3,500 trucks. Trucks imported beyond the quota will see duty ease to 22% by year ten.
Spirits and Beverages
| Product | Import Duty Change | Timeline |
|---|---|---|
| Scotch whisky | 150% → 75% immediately, then → 40% | Over 10 years |
| Gin | Similar phased reduction | Over 10 years |
| Other premium spirits (cider, mead, sake, brandy, bourbon, rum, vodka, liqueurs, tequila) | 150% → 110% in year one, → 75% | By year ten |
These cuts apply only above a minimum import price, generally around $5 to $6 per litre, or roughly $3.75 to $6 for a 750 ml bottle.
Import duties are also being reduced over time on a broader set of British consumer goods, including chocolates, sweet biscuits, soft drinks, cosmetics, cosmetic soaps, perfumes, shaving creams, and nail polish. Salmon and lamb are among the UK food exports covered under phased tariff reductions.
Medical Devices and Healthcare Equipment
Reduced tariffs are expected to lower costs on some imported UK healthcare equipment, including surgical instruments, diagnostic equipment, ECG machines, and X-ray systems.
Silver and Luxury Goods
Silver is Britain's largest export to India by value. Under the agreement, India will gradually reduce the import tariff on silver to zero over ten years. According to the Global Trade Research Initiative (GTRI), silver and aerospace are among the sectors where the UK is expected to gain the most.
Select British luxury products, including fashion and lifestyle items, are expected to see lower prices as tariffs decline under the agreed schedule.
Excluded Sectors
India has kept several sensitive domestic sectors out of the tariff concessions. These include dairy products, cereals, millets, pulses, edible oils, and oilseeds.
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