Cheaper whiskey, EVS delayed if the introduction of India -k FTA probably in the latter half of 2026 | Today news
New -delhi: If in 2025 you are hoping for cheaper single malt -whisky or British electric vehicles on Indian roads, the guard is far from over. The implementation of the India-UK Free Trade Agreement (FTA) is expected to take at least ten months from the date of signing, which means that the agreement is likely to come into effect before the last half of 2026 is in effect. The two parties closed negotiations for an FTA on May 6, but a final agreement has yet to be signed. ‘After the signing, the UK’s accession to CPTPP (comprehensive and progressive Trans-Pacific Partnership Agreement lasted ten months, and a similar timeline is expected for the FTA of India,’ a senior British official said on the condition of anonymity that the schedule would largely depend on the British parliament. The official explained that the UK’s accession to the comprehensive and progressive Trans-Pacific Partnership (CPTPP) agreement lasted ten months after the signing, and a similar timeframe is expected for the India-UK FTA. The CPTPP was initially signed by 11 countries after the US was withdrawn from the original Trans-Pacific Partnership (TPP). These original 11 Countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, with the UK signing the Treaty in July 2023. As per the policy document on fta, tariff on the uk Phases – From the current 150% to 75% right at the operationization of the deal, and eventually to 40% at the tenth year of the agreement. Similarly, import tax on British cars will be cut from more than 100% to 10%, although it will only apply within a specific annual quota. £ 25.5 billion in trade reinforcement India and the United Kingdom have been negotiating the conditions of the free trade treaty since January 2022, with market access for premium spirits and electric vehicles among the most controversial issues. Meanwhile, a spokesman for the British High Commission said: “The UK and India have agreed that a landmark trade transaction is expected to increase bilateral trade by £ 25.5 billion.” “After the trade negotiations, we make final preparations before signing the treaty. We will implement this agreement as quickly as possible while we make the necessary investigation so that it can grow in both countries,” the spokesman said. The agreement contains tariff concessions and quota-based arrangements in sectors of strategic importance to both countries. UK car manufacturers will earn significantly as tariffs on vehicles exported to India will fall from more than 100% to 10% under a particular quota. The same quota-based mechanism was applied to electric vehicles (EVs), where UK firms gained limited but meaningful access to the Indian market, according to the India-Uk FTA policy document released by the British Department of Trade on May 6. On the issue of the UK’s proposed carbon border adjustment mechanism (CBAM), the official said the agreement (FTA) did not contain provisions on the proposed carbon border adaptation mechanism (CBAM). However, the two countries continue with a broader collaboration on climate goals, with the UK supporting India’s decarbonization efforts as the implementation of CBAM implementation. Trading negotiators from both countries have agreed to a system of quotas that enable market access, while allowing the volume of tax -free imports, thereby protecting sensitive sectors. As the two governments are now moving to formal signing, attention will shift to the legislative processes and domestic preparations needed to operationalize the treaty. If the parliamentary procedures unfold without delay, the India-UK FTA can take effect at one time or another in the second half of 2026, giving exporters on both sides a clearer timeline to plan for new trading opportunities, according to the British official.