VOI World/ Desk
The India-UK trade deal will officially come into force on July 15, marking one of the fastest implementations of a major trade agreement in British history and opening wider access for Indian exports to the UK market.
The announcement followed a meeting between PM Modi and British Prime Minister Keir Starmer on the sidelines of the G7 Summit in France. Both leaders jointly confirmed the date after resolving a deadlock over British steel safeguard measures.
The India-UK trade deal is projected to increase bilateral trade by £25.5 billion annually in the long run while adding £5.1 billion to India’s GDP and £4.8 billion to the UK economy. According to the British High Commission, the agreement liberalises 99% of UK tariffs and 90% of Indian tariffs.
Indian exporters of textiles, footwear, leather goods, gems and jewellery, engineering products and processed foods are expected to benefit from greater market access. A breakthrough on steel import quotas helped clear the final hurdle, with London agreeing to raise duty-free access for Indian steel exports to 85%.
Alongside the Comprehensive Economic and Trade Agreement (CETA), the Double Contributions Convention (DCC) will also take effect on July 15. The social security arrangement extends the period during which Indian professionals working temporarily in the UK can continue contributing to their home country’s system, reducing the burden of double contributions.
Tariff cuts on Scotch whisky, automobiles and cosmetics are also expected to benefit British exporters. Officials from both countries said the agreement would provide businesses with immediate competitive advantages and strengthen supply chains.
PM Modi described the pact as a historic milestone that would boost trade and investment while creating opportunities for Indian farmers, MSMEs, startups, workers and innovators.
