UK-India FTA worth $6.5 billion to come into force on July 15 after Starmer-Modi talks at G7

Published 17 June 2026 · local

Britain's free trade agreement (FTA) with India will come into force on July 15, the UK government announced on Wednesday (June 17), clearing the way

Britain's free trade agreement (FTA) with India will come into force on July 15, the UK government announced on Wednesday (June 17), clearing the way for the implementation of a deal expected to boost bilateral trade and investment between the two countries. The announcement follows discussions between British Prime Minister Keir Starmer and Prime Minister Narendra Modi on the sidelines of the G7 Summit in France. The two sides reportedly agreed to move ahead with the agreement despite concerns raised by India over Britain's upcoming steel tariff regime, which is scheduled to take effect on July 1. Concerns over UK steel tariffs Quick answers to key questions • 5 QUESTIONS 1 What benefits will the UK-India Free Trade Agreement (FTA) bring to businesses? ⌵ The UK-India FTA is expected to significantly improve market access through tariff reductions, making British products more competitive in India and Indian products more accessible in the UK. 2 Why were there concerns over the UK steel tariff regime from India?

⌵ India raised concerns about the UK's new steel tariff regime as it could impact the trade agreement, potentially leading New Delhi to seek negotiations or delays in implementing the FTA. 3 How should businesses prepare for the UK-India FTA implementation? ⌵ Businesses need to complete the required registration process within 28 days to benefit from tariff reductions under the UK-India FTA. 4 What specific tariff reductions are included in the UK-India FTA? ⌵ Under the agreement, India will reduce whisky tariffs from 150% to 40% and lower automobile tariffs to 10%, while the UK will cut tariffs on clothing, footwear, and select food products from India. 5 Should Indian businesses be optimistic about exporting to the UK following the FTA? ⌵ Yes, the FTA is likely to enhance India's access to the UK market, making Indian exports more competitive and fostering stronger economic ties between the two countries. Indian officials reportedly indicated that New Delhi could seek to reopen discussions or delay implementation of the trade pact due to worries about the impact of new UK trade measures affecting steel imports.

The dispute had cast uncertainty over the rollout of the agreement, which was signed last year and is estimated to be worth £4.8 billion ($6.5 billion). However, talks between Starmer and Modi helped clear the way for the agreement's implementation as scheduled. UK urges businesses to prepare British Business and Trade Secretary Peter Kyle welcomed the decision and urged companies to take advantage of the opportunities created by the pact. “The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared,” Kyle said in a statement. The UK government said businesses have 28 days to complete the registration process required to benefit from tariff reductions under the agreement. Major tariff cuts under the agreement The FTA is expected to significantly improve market access for businesses in both countries through a series of tariff reductions. Under the agreement India will reduce tariffs on British whisky from 150% to 40%.