India-UK Free Trade Agreement to Take Effect from July 15; 99% of Indian Exports to Enjoy Duty-Free Access
India and the United Kingdom have announced that their landmark Free Trade Agreement (FTA) will officially come into force on July 15, marking a significant milestone in bilateral economic relations. The announcement was made on June 17 following discussions between Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer on the sidelines of the G7 Summit in France.
Under the agreement, nearly 99% of Indian exports will receive tariff-free access to the UK market, providing a major boost to sectors such as textiles, apparel, engineering goods, pharmaceuticals, and agricultural products.
The confirmation follows months of negotiations and implementation planning after the two countries finalized the trade pact last year. Earlier in the day, speculation surrounding the announcement intensified after a brief “hot mic” moment captured the two leaders exchanging the words, “We did it,” prompting reports of a breakthrough in discussions.
The G7 Summit, currently being held in Evian-les-Bains, France, offered an opportunity for both leaders to review the progress of India-UK relations and finalize key aspects of the agreement’s implementation.
A crucial element of the negotiations involved the treatment of Indian steel exports under the United Kingdom’s safeguard measures. Both sides worked to address trade concerns while ensuring broader market access and long-term economic cooperation.
The India-UK FTA is expected to strengthen trade and investment flows between the two countries, enhance supply chain collaboration, and create new opportunities for businesses on both sides. Industry stakeholders believe the agreement will significantly improve India’s export competitiveness in one of its key international markets.
With the implementation date now confirmed, exporters and businesses are preparing to leverage the benefits of the agreement, which is expected to deepen economic ties and accelerate bilateral trade growth in the coming years.