The free trade agreement between India and the United Kingdom will come into effect from July 15, the British government said in a statement on Wednesday. The confirmation came following a meeting between Indian Prime Minister Narendra Modi and his UK counterpart Keir Starmer at the sidelines of the G7 meeting in France.
Businesses on both sides will be able to trade under the FTA terms from July 15, the statement noted, while adding that the UK-India social security agreement to also kick in from the same date. "Businesses encouraged to prepare for entry-into-force to feel the benefits of massive tariff cuts."
"Industries across the United Kingdom will benefit, with whisky tariffs cut from 150% to 40%, automotives from 100% to 10% under a quota and cosmetics will see tariffs of up to 22% eliminated either from day one or after 10 years," it added.
British and Indian professionals working abroad in India and UK respectively won't have to pay social security contributions doubly, it added.
The statement further said that the UK and India urge companies to use the next few days to prepare for the deal's implementation.
Earlier on Wednesday, the two leaders were heard as saying on a microphone that some form of agreement had been reached. “We did it,” Modi was heard as saying, according to Bloomberg. Starmer then reportedly replied: “We did it. Yes, yes, yes, I hear. We got it over the line. So this is good.”
A historic milestone for India-UK relations.
— Narendra Modi (@narendramodi) June 17, 2026
Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will enter into force on 15th July 2026.
This agreement will significantly boost our bilateral trade and investment.
It will also unlock numerous… pic.twitter.com/I0bMCjdtg4
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Originally signed in July 2025, the India-UK FTA faced a stall of about 12 months in its implementation. The delays were linked to the complex negotiations over the UK's proposed Carbon Border Adjustment Mechanism (CBAM) and its steel safeguard measures.
The India-UK FTA is expected to significantly expand market access across goods and services, while also deepening cooperation in areas such as mobility, technology, investment and clean energy.
In financial year 2024-25, the India-UK trade had reached $56 billion without the existence of a free trade pact. The two sides, at the time of launching negotiations, said they aim to double the trade by 2030.
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