The wait for cheap Scotch whisky got a wee bit longer
The implementation of the India-UK free trade agreement (FTA) is expected to take at least 10 months from the date of signing, meaning the deal is unlikely to come into effect before the latter half of 2026—assuming all goes as planned.
New Delhi: If you’re hoping for cheaper single malt whisky or British electric vehicles on Indian roads in 2025, the wait is far from over.
The implementation of the India-UK free trade agreement (FTA) is expected to take at least 10 months from the date of signing, meaning the deal is unlikely to come into effect before the latter half of 2026—assuming all goes as planned. The two sides concluded negotiations for an FTA on 6 May, but a final deal is yet to be signed.
“After signing, the UK’s accession to CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) took 10 months, and a similar timeline is expected for the India FTA,” a senior British official told Mint on condition of anonymity, noting that the schedule will largely depend on the UK parliament’s timetable.
The official explained that the UK ’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took ten months after signing, and a similar timeframe is anticipated for the India-UK FTA. The CPTPP was initially signed by 11 countries after the US withdrew from the original Trans-Pacific Partnership (TPP). These original 11 countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, with the UK signing the treaty in July 2023.
As per the policy document on FTA, tariffs on the UK’s whisky and gin will be reduced in phases—from the current 150% to 75% right at the operationalisation of the deal, and eventually to 40% by the tenth year of the agreement. Similarly, import duties on British automobiles will be slashed from over 100% to 10%, though this will apply only within a specified annual quota.
£25.5 billion trade boost
India and the UK had been negotiating the terms of the free trade pact since January 2022, with market access for premium spirits and electric vehicles among the most contentious issues.
Meanwhile, a British High Commission spokesperson said, “The UK and India have agreed a landmark trade deal expected to increase bilateral trade by £25.5 billion.”
“Following the conclusion of trade negotiations, we are making final preparations ahead of signing the treaty. We will bring this deal into force as quickly as possible, whilst allowing for the necessary scrutiny, so it can deliver growth across both countries,” the spokesperson said.
The agreement includes tariff concessions and quota-based arrangements in sectors of strategic interest to both countries. UK carmakers stand to gain significantly as tariffs on vehicles exported to India will drop from over 100% to 10% under a specified quota. The same quota-based mechanism has been applied to electric vehicles (EVs), where British firms have secured limited but meaningful access to the Indian market, as per the policy document of India-UK FTA released on 6 May by the UK commerce department.
On the issue of the UK's proposed Carbon Border Adjustment Mechanism (CBAM), the official said that the agreement (FTA) does not contain provisions on the UK's proposed Carbon Border Adjustment Mechanism (CBAM).
However, the two countries continue broader cooperation on climate goals, with the UK supporting India's decarbonisation efforts as CBAM implementation proceeds.
Trade negotiators from both countries have agreed to a system of quotas that enable market access while capping the volume of duty-free imports permitted, thereby safeguarding sensitive sectors. As the two governments now move toward formal signing, attention will shift to the legislative processes and domestic preparations needed to operationalise the pact.
If parliamentary procedures unfold without delay, the India-UK FTA could become effective sometime in the second half of 2026, giving exporters on both sides a clearer timeline to plan for new trade opportunities, as per the British official.
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