India-UK Trade Pact Set For April Rollout: Scotch Whisky Duty To Drop From 150% To 75%, Auto Tariffs To Be Reduced Gradually

India and the United Kingdom are getting ready to put into action a long-awaited free trade agreement that was signed in July last year. According to government officials, the deal is now expected to be implemented from April 2026, once both countries complete their approval processes in Parliament.

The agreement, formally known as the Comprehensive Economic and Trade Agreement (CETA), was signed on July 24, 2025, and aims to reshape trade between the two nations by cutting duties on most goods and opening markets in ways that have never been done before.

Double Contributions Convention

“We are expecting the pact to be implemented from April this year,” a government official told reporters, referring to the CETA deal, as per reports. The official also pointed out that a companion pact, called the Double Contributions Convention (DCC), is likely to come into force at the same time. The DCC is meant to help temporary workers avoid paying social security contributions in both countries if they move between the UK and India for work.

For the pact to take effect, both countries must complete procedures in their legislatures. In India, such agreements need approval by the Union Cabinet, while in the UK, the House of Commons and the House of Lords must debate and ratify the pact. Reports say that, recently, the UK Parliament held a debate on the agreement, with Chris Bryant, Minister of State in the UK’s Department for Business and Trade, calling the deal “well beyond India’s precedent in opening the door for UK businesses”.

India Cuts Tariff On British Goods

According to reports, once implemented, the pact will bring major changes to trade flows between India and the UK. Under the deal, 99 per cent of Indian exports will be allowed into the UK market at zero duty, which could be a big boost for sectors such as textiles, footwear, gems and jewellery, sports goods, and toys.

On the flip side, India will reduce import duties on several British products. For example, tariffs on Scotch whisky are set to be reduced in stages, from 150 per cent to 75 per cent immediately, and then further to 40 per cent by 2035, as per reports. Duties on automobiles will also come down gradually under a quota-based system, which could impact the price of cars in India.

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