India-UK Free Trade Agreement Set to Launch on July 15

The India-UK Free Trade Agreement, one of the largest trade deals, is set to be operational on July 15. This agreement aims to eliminate tariffs on various exports, significantly boosting the economies of both nations. With protections for Indian steel exports and reductions in tariffs on processed foods, textiles, and more, the FTA is expected to enhance India's GDP by £5.1 billion and the UK's by £4.8 billion. Discover the full implications of this landmark agreement and how it will benefit exporters.

By Narendra Chaudhary Jun 18, 2026, 11:05 IST

India's Major Free Trade Agreement with the UK

The free trade agreement (FTA) between India and the United Kingdom, one of the most significant trade deals, is scheduled to take effect on July 15, following nearly a year since its signing. This operational date was established by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer during the G7 summit.

In May of the previous year, India and the UK announced the successful conclusion of their negotiations after 14 rounds, culminating in the signing of the FTA on July 25, 2025, in London.

The Comprehensive Economic and Trade Agreement (CETA) will enable the UK to eliminate tariffs on several Indian exports while safeguarding India's dairy, cereals, oilseeds, and vegetable sectors. This agreement is projected to enhance India's GDP by approximately £5.1 billion annually and contribute around £4.8 billion to the UK's GDP.

Benefits for Exporters and Price Reductions:

India has successfully negotiated protections for most of its steel exports to the UK, with 85% of shipments exempt from the UK's forthcoming steel safeguard measures. From July 1, tariff-free steel imports will be limited, with overall quota volumes reduced by 60% compared to the current safeguard framework. Any imports exceeding this quota will incur a 50% tariff.

According to the GTRI, Indian exports valued at approximately USD 775 million may be impacted by the UK's proposed carbon tax on products like iron and steel, aluminum, fertilizers, and cement. With the FTA in effect, the UK will eliminate tariffs on various products, including up to 70% on processed food, 21.5% on marine goods, 18% on engineering products and auto parts, 16% on leather and footwear, 12% on textiles and clothing, and 8% on chemicals and pharmaceuticals, all of which will see their tariffs reduced to zero.