NEW DELHI: The India-UK Free Trade Agreement (FTA), officially known as the Comprehensive Economic and Trade Agreement (CETA), came into force on Wednesday, with British High Commissioner to India Lindy Cameron describing it as a "new gold standard" for global trade agreements that demonstrates the value of a rules-based trading system.
Cameron said the agreement should be seen not as the culmination of India-UK economic cooperation but as the foundation for a deeper partnership. “This is not the ceiling of our ambitions; it is the floor on which we build,” she said.
The pact reflects a high level of trust between the two countries and marks the beginning of a new phase in their relationship, she said.
Calling the trade pact a historic moment for the modern India-UK partnership, Cameron said it unlocks the combined economic potential of two major economies and will create new opportunities for businesses, investors and consumers in both countries.
“It is a historical moment for the modern UK-India partnership as the trade deal has unlocked the combined economic might of two global economic powerhouses,” Cameron told a group of journalists.
The agreement is expected to increase bilateral trade by more than £25 billion annually over the long term and raise the combined GDP of both countries by nearly £5 billion, she said.
The pact comes into force at a time of growing uncertainty in global trade, marked by protectionist measures, shifting supply chains and geopolitical tensions, including the conflict in West Asia.
Against this backdrop, London views the agreement as a signal of its continued commitment to open markets and predictable trade rules.
“The UK-India FTA is the new gold standard of trade deals -- pro-worker, pro-innovation and pro-growth. It is a force multiplier and a template for future trade agreements,” Cameron said.
For the UK, the agreement opens wider access to India's large consumer market, with tariff reductions benefiting sectors such as premium automobiles, food products and alcoholic beverages.
Cameron highlighted the reduction in import duties on Scotch whisky as one of the immediate benefits for consumers. Duties have been cut from 150% to 75% initially, with further reductions expected.
“If you had a Rs 5,000 bottle of whisky that you were going to sell in India, because of tariffs, you tended to sell it for Rs 12,500 yesterday. Today you just have to sell it for around Rs 8,500, and soon for just Rs 7,000,” she said.
Cameron said the deal goes beyond tariff reductions, creating a broader framework that links British expertise in finance, design, sustainability and innovation with India's scale, talent and manufacturing capabilities.
“India is one of the fastest-growing economies in the G20, a fountain of talent, technology and innovation, while the UK is home to global hubs in finance and international investment,” she said.
