The UK and India will activate a landmark trade agreement on 15 July, having resolved a last-minute dispute over UK steel import controls at the G7 summit in Evian, France.
Prime Ministers Keir Starmer and Narendra Modi confirmed on Wednesday at the G7 summit in Evian, France that the UK-India Comprehensive Economic and Trade Agreement will take effect on 15 July, ending a standoff over Britain’s new steel tariff controls that had threatened to delay the deal. The agreement was signed in July 2025; at less than a year to implementation, Britain describes it as the fastest turnaround for any UK trade deal on record.
UK government figures forecast the deal will boost British GDP by £4.8bn and increase bilateral trade by £25.5bn over the long term, binding the world’s fifth- and sixth-largest economies in one of the most ambitious bilateral agreements of its kind.
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What the Deal Means for British Businesses
The headline gain for UK exporters comes in the whisky market. India will cut its tariff on Scotch from 150% to 40% by the deal’s tenth year, opening one of the world’s largest spirits markets. Indian automotive duties will fall from 100% to 10% under a quota, directly benefiting British car exporters. In return, Britain reduces tariffs on Indian clothing, footwear and some food. A companion social security agreement, also taking effect on 15 July, will exempt workers on temporary postings between the two countries from making dual contributions for up to five years.
The deal’s final obstacle was Britain’s own steel safeguard regime, also due to take effect on 1 July. The measures sharply reduce duty-free import quotas and impose a 50% tariff on steel volumes beyond those limits, designed to protect domestic steelmakers from cheaper foreign supply. India had warned it might seek to reopen the agreement unless its steel exporters were shielded. Both sides reached a compromise on Wednesday: the Indian government confirmed that 85% of its steel exports to Britain fall outside the scope of the safeguard measures, with remaining volumes available through quota arrangements.
The steel controls remain contentious within British industry. According to Bloomberg, William Bain, Head of Trade Policy at the British Chamber of Commerce and Industry, urged a rethink, warning: “We must avoid this serious self-inflicted blow to business,” noting that many sectors rely on imported steel grades unavailable domestically. UK Steel, the industry body, takes the opposing view, arguing protection is necessary against subsidised Chinese imports. Business and Trade Secretary Peter Kyle said the overall deal “gives British exporters an edge over international competitors,” while Prime Minister Modi called it “a historic milestone for India-UK ties.”
Both the trade deal and Britain’s new steel tariff regime take effect within a fortnight. Manufacturers reliant on imported steel should monitor quota consumption closely: once duty-free amounts are exhausted, the 50% tariff on excess volumes could add millions of pounds in costs across affected supply chains. For exporters in spirits and automotive, by contrast, the opening of the Indian market on 15 July represents a long-awaited commercial prize.