Key facts
- The UK-India free trade deal will be implemented on July 15.
- India's concerns regarding the UK's steel tariff regime have been resolved.
- The agreement is expected to boost UK GDP by £4.8 billion annually.
- Tariffs on whisky will be reduced from 150% to 40% over 10 years.
- Tariffs on automotive goods will be cut from 100% to 10% under quota.
- The Double Contributions Convention Agreement will extend the social security contribution waiver to five years.
Britain and India have agreed to implement their free trade deal on July 15, resolving a dispute over the UK's forthcoming steel tariff regime. The agreement, signed last year, is expected to significantly boost bilateral trade and investment between the world's fifth and sixth-largest economies.
Discussions between UK Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, held at the G7 summit in France, paved the way for the implementation. India had previously raised concerns that new UK steel measures, set to take effect July 1, could delay the pact. However, Indian officials stated that 85% of Indian exports would be unaffected by the measures, with covered lines having access through quotas.
The deal includes substantial tariff reductions, such as cutting whisky tariffs from 150% to 40% and automotive tariffs from 100% to 10% over a decade. Additionally, the UK-India Double Contributions Convention Agreement will take effect, extending the period workers on temporary postings can avoid double social security contributions to five years from three.