Historic deal between India and Britain, FTA comes into effect from today, there will be a bumper boom in the trade of both the countries.

India-UK FTA Deal 2026: Britain’s High Commissioner to India Lindy Cameron has described the implementation of the India-UK Free Trade Agreement (FTA) as a historic moment in the relations between the two countries. He said that this agreement will open new opportunities for trade, investment, employment and economic cooperation and will take the partnership between the two countries to new heights.

In a press conference held on the implementation of the agreement, Cameron said that the India-UK FTA has become effective from today. Describing it as a historic achievement for modern India-UK relations, he said, it is likely to increase the annual bilateral trade between the two countries by more than 25 billion pounds in the long run, while adding about 5 billion pounds to the combined GDP of the two countries.

Both countries will benefit from FTA

Lindy Cameron said that this agreement will benefit all small and big businesses through reduction in import duties, better access to the market and ease of doing business. He said that under the new quota system, import duty on premium cars manufactured in Britain will also be gradually reduced, making the prestigious British automobile brands more affordable for Indian customers.

Describing this agreement as the new gold standard of trade agreements, he said that it is the most comprehensive free trade agreement between the two countries till date. It includes 30 chapters related to goods, services, government procurement and other areas.

Import duty will be reduced by 99 percent

According to Cameron, now about 99 percent of Indian products going to Britain will be duty-free, while duties on about 90 percent of British exports coming to India will be eliminated or reduced across tariff lines.

He said, this agreement will provide special benefits to sectors like infrastructure, clean energy, financial services, manufacturing, creative industries and consumer goods. Also, working movement between the two countries will also be easier for engineers, consultants and other professionals.

Clean energy sector will benefit

The clean energy sector will also be a big beneficiary of this agreement. 98 per cent of environmental and green technology products have been brought under the liberal trade regime, which will accelerate India’s energy transition program and promote exports of turbines, generators and renewable energy equipment from the UK.

Also read- explainer: Mossad agent turns out to be the President of Iran! There was a conspiracy to overthrow the government, how did Israel’s masterplan fail?

He said that under the agreement, new opportunities will also open in the field of government procurement. This will give British companies better access to India’s central government procurement market, worth approximately £38 billion, while Indian companies will also have the opportunity to participate in government procurement projects in the UK.