The India-UK Comprehensive Economic and Trade Agreement (CETA) comes into force today, giving nearly all Indian exports duty-free access to Britain. As part of the deal, India will also lower import duties on a range of British goods over a phased period.
The India-UK trade deal was signed in London on July 24, 2025 by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer. It took effect nearly a year later, on July 15, 2026.
Also read: India-UK FTA: Rolls-Royce, Range Rover cars to get cheaper in India
Here's a look at what could get cheaper, and when.
Under the agreement, 99% of India's tariff lines get duty-free entry into the UK. In return, India will lower import duties on select British goods, most of them in stages over five to ten years rather than immediately.
1. Premium British cars
Import duty on fully built UK cars, currently as high as 110%, will be reduced to 10% over ten years through an annual quota system.
- Petrol and diesel models get concessional treatment from the outset.
- Electric, hybrid and hydrogen vehicles will get preferential access only from the sixth year onward, giving India's domestic EV makers about five years of protection.
- Over the first 15 years, India will allow import of 3.78 lakh fully built conventional engine passenger vehicles from the UK, including mass market models, at concessional duty.
- Brands such as Rolls Royce, Aston Martin, McLaren, Jaguar and Land Rover are expected to benefit from the tariff reduction.
