India-UK new trade deal may come-into-effect from May 2nd week:British cars to be approx 48% cheaper in India, Scotch prices to reduce by around 44%

The India-UK free trade agreement, signed in July last year, is likely to come into force from the second week of May, news agency PTI said, citing an official. India and the UK, on 24 July, 2025, signed the Comprehensive Economic and Trade Agreement (CETA), under which 99% of Indian exports will enter the British market at zero duty, while tariffs on British products, such as cars and whisky, will be reduced in India in a phased manner. “We are expecting the pact to be implemented from the second week of May,” the official said. India-UK trade size: CETA aims to double the $56 billion (₹5.18 lakh crore) trade between the two economies by 2030. Trade Terms 99% of Indian goods will be exported to the UK at zero tariff 99% of UK goods will be imported at an average tariff of 3% Bilateral trade is expected to double by 2030 What will become cheaper in India? The average tariff on UK imports will reduce from 15% to 3%. 85% of goods will become completely tariff-free within 10 years. Here’s what will become cheaper: 1. Whisky and Gin Tariff on Scotch whisky and gin will reduce from 150% to 75% Will further decrease to 40% by the tenth year of the agreement Example: A scotch bottle worth ₹5,000 will cost ₹2,800 2. Luxury Cars Tariff on UK cars (like Jaguar Land Rover, Rolls-Royce) will reduce from 110% to 10% under quota system Cars could become apprximately 48% cheaper 3. Food and Beverages Reduced tariffs on: Salmon Lamb Chocolate Biscuits Soft drinks 4. Cosmetics and Medical Devices Tariff reduction from 15% to 3% on: Cosmetics Medical equipment Aerospace parts Indian products on which UK agreed to give zero duty access in the Britain market: Agri Products: Vegetables Cereals Turmeric Pepper Cardamom Pickles Pulses ————————————————- Processed foods Spice mixes Ready-to-eat meals —————————————————- Plantation Sector: Instant coffee Tea Spices Marine Products: Import Duty reduced from 4.2%-8.5% to 0% Shrimp Tuna Fishmeal Feeds ——————————————————————————————————– Textiles: Clothing Ready-Made Garments Home Textiles Carpets Handicrafts ———————————————– Electronics and Software (ESC): Smartphones Optical fiber cables Inverters ————————————————- Pharma: Generic medicines Medical devices Surgical instruments Diagnostic equipment ECG machines X-Ray systems ——————————————— Plastics: Films Sheets Pipes Packaging Tableware Kitchenware ———————————————- Sports goods/toys: Soccer balls Cricket gear Rugby balls Non-electronic toys ——————————————— Others: Oilseeds Chemicals Gems and Jewellery Engineering: Tariffs reduced from as high as 18% to 0% Leather Footwear: Import Duty reduced from 16% to 0% British commodities on which India refused to reduce tariffs: Dairy products Edible oils Apples Oats Others