India and the UK, on July 24, 2025, signed the Comprehensive Economic and Trade Agreement (CETA), under which 99 percent of Indian exports will enter the British market at zero duty, while tariffs on British products, such as cars and whisky, will be reduced in India.
“We are expecting the pact to be implemented from the second week of May,” the official said.
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The two countries have also signed the Double Contributions Convention (DCC) pact to ensure temporary workers would not have to duplicate social levies in either country.
The official said that both pacts are likely to be implemented in parallel.
CETA aims to double the USD 56 billion trade between the two economies by 2030.While India has opened its market to various consumer goods, including chocolates, biscuits, and cosmetics, it will gain greater access to export products, such as textiles, footwear, gems and jewellery, sports goods, and toys.
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Under the pact, tariffs on Scotch whisky will be reduced from 150 percent to 75 percent immediately, and further lowered to 40 percent by 2035.
On automobiles, India will reduce import duties to 10 percent over five years, down from the current rate of up to 110 percent, under a gradually liberalised quota system.
In return, Indian manufacturers will gain access to the UK market for electric and hybrid vehicles within a quota framework.