UK-India trade deal worth over $6 billion to start July 15 - Finance news and analysis from Global Banking & Finance Review
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UK-India trade deal worth over $6 billion to start July 15

Published by Global Banking & Finance Review

Posted on June 17, 2026

2 min read

· Last updated: June 17, 2026

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UK-India trade deal worth over $6 billion to start July 15

Key Details and Implications of the UK-India Free Trade Agreement

Agreement Announcement and Background

LONDON, June 17 (Reuters) - Britain's free trade agreement with India will come into force on July 15, the British government said on Wednesday, reaching agreement to implement the deal despite a dispute over London's forthcoming steel tariff regime.

Concerns Over Steel Tariffs

Indian officials had raised the prospect of reopening or delaying the application of the FTA, worth £4.8 billion ($6.5 billion) and signed last year, over concern about the impact of new UK steel trade measures, due to come into effect on July 1.

Resolution and Political Discussions

But the two countries agreed to move ahead with implementation of the trade deal after British Prime Minister Keir Starmer held talks with his Indian counterpart Narendra Modi at a G7 leaders summit in France.

Statements from Officials

"The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared," British Business and Trade Secretary Peter Kyle said in a statement.

Tariff Reductions and Business Impact

Tariff Changes Under the Deal

Under the deal, India will cut whisky tariffs to 40% from 150%, and automotives from 10% under a quota to 100%, with Britain cutting tariffs on goods such as clothes, footwear and some food.

Business Registration Requirements

The British government said businesses had 28 days to register in order to get the benefit of tariff reductions.

Additional Information

($1 = 0.7462 pounds)

(Reporting by William James, Alistair Smout and Muvija M)

Key Takeaways

  • The agreement, signed July 2025, aims to raise UK GDP by £4.8 billion annually and increase bilateral trade by £25.5 billion by 2040 (gov.uk).
  • Implementation was delayed by disagreements regarding the UK’s planned steel import curbs, but both sides have reached a resolution to move forward (business-standard.com).
  • Once in force, the deal will cut or eliminate tariffs on up to 90% of UK goods exports to India, benefiting sectors from whisky to medical devices, and unlock access to India’s substantial procurement market (gov.uk).

References

Frequently Asked Questions

When will the UK-India trade deal start?
The UK-India trade deal will be implemented on July 15.
How much is the UK-India trade deal worth?
The free trade deal is worth £4.8 billion, or approximately $6.5 billion.
Why was the UK-India trade deal delayed?
The deal was delayed due to a dispute over London's forthcoming steel tariff regime.
Who reported on the implementation date of the UK-India trade deal?
The implementation date was reported by William James and written by Muvija M for Reuters.
What is the current exchange rate mentioned in the article?
The article cites an exchange rate of $1 = 0.7462 pounds.

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