New Delhi: If in 2025 you hope for cheaper free malt whiskey or British electric vehicles on Indian roads, waiting is far from over.
It is expected that the free trade agreement in India UK (FTA) will last at least 10 months from the date of signature, which means that the agreement is likely to come into force before the last half of 2026-grapping everything goes as planned. Both parties concluded negotiations on FTA on 6 May, but the final agreement must still be signed.
“After signing the British accession to CPTPP (a comprehensive and progressive agreement on trans-tichoreal partnerships), it lasted 10 months and a similar timeline is expected for Indian FTA,” said a higher British Mint on anonymity and noted that the schedule would largely depend on the United Kingdom.
The official explained that the UK accession to a comprehensive and progressive agreement on trans-tichoreal partnerships (CPTPP) lasted ten months after signing and a similar timeframe is expected for India-UK FTA. CPTPP was originally signed by 11 countries after the US withdrew from the original trans-tichoral partnership (TPP). These original 11 countries are Australia, Brunej, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, with the United Kingdom signed a treaty in July 2023.
According to a political document on FTA, tariffs to British whiskey and gin will be reduced in phases – from the current 150% to 75% directly when operating the agreement and ultimately to 40% in the tenth year of the agreement. Similarly, import obligations to British cars will be reduced from more than 100% to 10%, although this will only apply within the designated annual quotas.
Strengthening of a business of 25.5 billion GBP
India and the United Kingdom negotiated the conditions of free trade contracts since January 2022 with access to the premium spirits and electric vehicles among the best problems.
Meanwhile, a spokesman for the British High Commission said: “The United Kingdom and India have agreed that the Milestone Agreement Agreement expects to increase bilateral trade by 25.5 billion GBP.”
“After the conclusion of business negotiations, we carry out final preparations before signing the contract. This agreement is valid as possible, and at the same time we will allow the necessary control, so it can supply growth in both countries,” the spokesman said.
This agreement includes concessions on the tariff and arrangements based on quotas in the strategic interest industry for both countries. British cars are worthwhile that tariffs to vehicles balanced to India fall from more than 100% to 10% within a specified quota. The same mechanism based on quotas was applied to electric vehicles (EVS), where British companies provided a limited but meaningful approach to the Indian market, according to the political document of the India-UK FTA published on May 6 by the British Business Department.
As regards the question of the proposed mechanism of modifying the boundaries of carbon boundaries (CBAM), he said that the Agreement (FTA) does not contain the provisions on the British proposed mechanism of adapting the carbon boundaries (CBAM).
However, both countries continue to cooperate in the field of climatic objectives, while the United Kingdom supports efforts to decarbonize India with CBAM implementation.
Business negotiations from both countries agreed to the quota system that allows access to the market and at the same time limits the volume of imports without customs, thereby protecting the sensitive sectors. Since both governments are now moving towards a formal signature, attention will move to legislative processes and home preparation needed to operate the pact.
If the parliamentary procedures were developed immediately, FTA India-UK could be found sometime in the second half of 2026, which will provide exporters on both sides for the planning of new business opportunities, according to the British official.
(Tagstotranslate) India-UK free trade agreement
