From Chocolates To Gin: What Gets Cheaper After India-UK FTA Comes Into Effect On July 15?

The India-UK free trade agreement (FTA), which will be in effect from July 15, is expected to reduce the prices for several products in the south Asian country, including gin, and chocolates.

The other items that are expected to cheaper as part of this trade pact are biscuits, cosmetics, and scotch whisky.

Meanwhile, Indian exporters are set to gain from a more competitive access to the British market space as exporter are set to receive zero-duty treatment on around 99 percent of tariff lines, entailing largely the total  value of India’s outbound shipments.

The India-UK Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15, 2026, nearly a year after it was signed.

The pact, inked on July 24, 2025, came to fruition after 14 rounds of negotiations and is expected to reduce duties across a wide range of goods, enhance market access, provide greater certainty for businesses trading between India and the UK.

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Consisting of 30 chapters, the agreement goes beyond traditional tariff cuts and includes aspects such as digital trade, telecommunications, financial services, intellectual property, innovation, small and medium enterprises, sustainability, transparency and government procurement.

Notably, Indian professionals working in the UK are set to benefit from social security relief as the Double Contribution Convention comes into effect from Wednesday, July 15, allowing eligible temporary workers to avoid paying social security contributions in both countries for the agreed period

Meanwhile, India-UK bilateral trade has crossed $25 billion.

The agreement comes as bilateral trade between India and the UK has expanded, though New Delhi's trade surplus with London narrowed sharply in 2025-26 as imports increased at a faster pace than exports.

India-UK merchandise trade rose to $25.13 billion in 2025-26 from $23.13 billion in 2024-25 and $17.48 billion in FY2021-22, as per the Ministry of Commerce data.

India’s exports to the UK stood at $13.44 billion in 2025-26, down from $14.55 billion in 2024-25.

The UK tallied for 3.04% of India’s total merchandise exports during the year. Imports from the UK rose sharply to $11.68 billion in FY2025-26, as against with $8.58 billion a year earlier, signalling a 36.11% rise.As a result, India’s trade surplus with the UK narrowed to $1.76 billion in 2025-26, compared with $5.97 billion in FY25.