The free trade agreement (FTA) between India and the United Kingdom will come into force on July 15, the British government said on Wednesday following a meeting between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer on the sidelines of the G7 summit in France.
In a statement, the UK government said businesses in both countries will be able to trade under the agreement's terms from July 15.
The India-UK social security agreement will also take effect on the same date.
The statement said companies should use the coming days to prepare for the agreement's implementation and benefit from significant tariff reductions.
Under the deal, tariffs on whisky imports to India will be reduced from 150 per cent to 40 per cent, while tariffs on automobiles will fall from 100 per cent to 10 per cent under a quota system. Tariffs of up to 22 per cent on cosmetics will be eliminated either immediately or over a period of 10 years.
The agreement also removes the requirement for British and Indian professionals working in each other's countries to make double social security contributions.
The confirmation came shortly after Modi and Starmer were heard discussing the outcome of the negotiations. According to Bloomberg, Modi said, "We did it," to which Starmer replied, "We did it. Yes, yes, yes, I hear. We got it over the line. So this is good."
The FTA was originally signed in July 2025 but its implementation was delayed for around 12 months due to negotiations over the UK's proposed Carbon Border Adjustment Mechanism (CBAM) and steel safeguard measures.
The agreement is expected to expand market access in goods and services and strengthen cooperation in areas including mobility, technology, investment and clean energy.
India-UK trade reached $56 billion in the 2024-25 financial year without a free trade pact. Both countries have previously stated their goal of doubling bilateral trade by 2030.