By Naraway
In this article
On 15 July 2026, two agreements took effect between India and the UK: the Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention. The first changes duties. The second changes payroll for people sent between the two countries.
Sources: Ministry of Commerce; IANS; Business Today.
Tariffs: Staged, Not Immediate
India's cuts are phased. About 90% of tariff lines are liberalised over time, and 85% reach zero within ten years. The UK side moves faster: about 99% of tariff lines are duty-free for Indian goods, though coverage by trade value differs from coverage by tariff line.
Whisky is the headline product: Indian duty falls from 150% to 40%. Each product has its own schedule, and the lower rate applies only to goods that meet the agreement's rules of origin.
People: Social Security and Visas
Double Contribution Convention
Employees posted temporarily to the other country keep paying social security at home, not in both. Reports differ on the period; most cite up to three years.
Visa places
1,800 annual places for categories such as yoga instructors and classical musicians. The convention does not create an immigration route or welfare access.
What Stays the Same
Company law, foreign investment rules, GST and income tax in India are unchanged by the agreement. A UK company opening in India still chooses between an office and a subsidiary, still reports its investment to RBI, and still meets the same filing calendar. The agreement lowers the cost of goods and people crossing the border; it does not change how a business is set up on the other side.
Why It Matters for UK Businesses
The UK was among the top three source countries for foreign companies registering in India in FY26, with nine registrations. With goods cheaper to move and posted staff cheaper to employ, the cost of testing India falls for UK firms at the same moment it stays unchanged for competitors from countries without an agreement.
Part of Naraway's research series India Market Entry in 2026.
In short
The India-UK Comprehensive Economic and Trade Agreement (CETA) and the Double Contribution Convention entered into force on 15 July 2026. India is cutting or removing duties on about 90% of tariff lines, 85% to zero over ten years; the UK grants zero duty on about 99% of tariff lines for Indian goods. Indian duty on Scotch whisky falls from 150% to 40% over the agreement's schedule. The convention exempts workers on temporary assignment from paying social security in the other country for a limited period.
- In force since 15 July 2026, together with the Double Contribution Convention.
- India liberalises about 90% of tariff lines; 85% become duty-free within ten years.
- The UK gives zero duty on about 99% of tariff lines for Indian goods.
- Scotch whisky duty in India: 150% to 40%.
- 1,800 annual visa slots for categories such as yoga instructors and classical musicians.
Sources
- India-UK CETA fact sheet, Ministry of Commerce and Industry
- India-UK Comprehensive Economic and Trade Agreement comes into force today, News On AIR
- India-UK FTA to make British goods cheaper and boost Indian exports from July 15, IANS
- UK-India FTA to come into force on 15 July: whisky tariffs to fall from 150 to 40, Business Today
- UK and India free trade agreement enters into force, HLC
Frequently Asked Questions
When did the India-UK FTA come into force?
On 15 July 2026, together with the Double Contribution Convention.
How much does India cut tariffs on UK goods?
India liberalises about 90% of its tariff lines, with 85% becoming fully duty-free over ten years. Many cuts are staged rather than immediate.
What happens to whisky duty in India under the deal?
Indian duty on Scotch whisky falls from 150% to 40% under the agreement's schedule.
What is the Double Contribution Convention?
An agreement that exempts workers temporarily posted between India and the UK from paying social security contributions in the host country for a limited period. Reports differ on the period; most cite three years.
Does the deal create new UK visas?
It includes 1,800 annual places for categories such as yoga instructors and classical musicians. The convention itself does not create an immigration route.
