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The Free Trade Agreement (FTA) between India and the United Kingdom enters into force on July 15, 2026, providing substantial relief to Indian consumers by reducing the tariffs on some of the key imports. The major highlight is Scotch whisky, which will see duties reduced from an eye-watering 150% to 40% over a period of years, making premium brands much more affordable.

Luxury vehicles from the UK will also have tariffs cut down from 100 percent to 10 percent, and prices of high-dollar items may substantially drop down courtesy of the quota system. As duties are completely removed or phased down, the price of cosmetics, beauty goods, and some high-quality packages such as chocolates and drinks is expected to turn down.

Indian exporters have enjoyed lower tariffs on textiles and leather, engineering goods, and others into the UK market, whereas Indian consumers have benefited from the availability of more options at competitive prices in the UK market with respect to luxury/lifestyle products. The deal is expected to further significantly increase the bilateral trade and deepen the trade between the two countries.