Evian-Les-Bains (France), Jun 17 (PTI) The India-UK comprehensive economic and trade agreement will enter into force on July 15, Prime Minister Narendra Modi and his British counterpart Keir Starmer announced on Wednesday, nearly a year after the landmark deal was sealed.

The announcement on the coming into force of the trade pact came a day after the two prime ministers held talks on the sidelines of the G7 summit in Evian-Les-Bains.

"A historic milestone for India-UK relations. Delighted to note that the India-UK Comprehensive Economic and Trade Agreement will enter into force on 15th July 2026," Modi said on social media.

"This agreement will significantly boost our bilateral trade and investment. It will also unlock numerous opportunities for Indian farmers, workers, MSMEs, startups and innovators and contribute meaningfully to the realisation of Viksit Bharat 2047," he said.

The trade deal was firmed up during PM Modi's visit to London in July last year.

PM Modi said the trade pact will bring significant momentum to the economic ties between India and the UK.

The trade deal will bring a range of benefits to industries across the UK and India, with whisky tariffs dropping from 150 per cent to 40 per cent, automotives from 100 per cent to 10 per cent under a quota and cosmetics will see tariffs of up to 22 per cent eliminated either from day one or after staging, a British readout said.

It will boost the UK's GDP by 4.8 billion pounds and Indian GDP by 5.1 billion pounds and bilateral trade by 25.5 billion pounds every year in the long run, it added.

The UK will cut tariffs on Indian goods coming into the country such as clothes, footwear, and some food products. Less cost for British businesses importing Indian products could mean lower prices and more choice for consumers across the country, the readout said.

UK Business and Trade Secretary Peter Kyle said: "We are bringing our landmark trade deal with India into force as quickly as we can because we want businesses in both India and the UK to immediately feel the benefits of 99 per cent of UK tariffs and 90 per cent of Indian tariffs being liberalised." "Trade is going to be cheaper, quicker, and easier for businesses on both sides, and I encourage all businesses to ensure that they are properly prepared to sell to each other’s market in the years to come," he said.

"The date is now set to boost our 48 billion pounds trading relationship and take it to the next level." The British readout said India has never implemented a deal of this size, and that the UK will have an immediate competitive advantage over other markets.  We have extended the benefit for UK nationals moving to India to work and continue to build entitlement to a UK State Pension from 36 months to 60 months, it said.

They will continue to pay National Insurance Contributions during that period, without also having to pay social security contributions in India, it added.

This is reciprocal for both British and Indian professionals and will be applicable to highly skilled professionals on pre-existing visa routes, the readout noted. PTI MPB ZH ZH