India-UK FTA Hailed As Transformational Step For Inclusive Growth & Trade Integration

Industry leaders have hailed the India-UK Free Trade Agreement (FTA) as a transformational moment in bilateral trade relations, as it unlocks significant opportunities for Indian exporters.

The Trade Promotion Council of India (TPCI) described the agreement as a landmark achievement that supports inclusive growth and deeper global trade integration.

India’s total trade with the UK touched a new high of $23.1 billion in FY2024–25, with exports rising to $14.5 billion — a 12.4 per cent increase over the previous year.

Imports grew modestly by 2.3 per cent to $8.6 billion, delivering a record trade surplus of $5.9 billion.

Thanks to the FTA, India’s agricultural exports to the UK are expected to grow by over 20 per cent in the next three years.

The agreement grants zero-duty access on more than 95 per cent of Indian agri and processed food products, including fruits, vegetables, cereals, tea, coffee, spices, oilseeds, alcoholic beverages, and ready-to-eat items.

India’s seafood industry will also benefit significantly, with duty-free access to the UK’s $5.4 billion marine market.

This move places Indian exporters on equal footing with major European players such as Germany and the Netherlands.

Fisherfolk in states like Andhra Pradesh, Odisha, Kerala, Gujarat, and Tamil Nadu are set to benefit directly.

Strengthening India’s Global Trade Position

Mohit Singla, Chairman of TPCI, stated, “The signing of the visionary India-UK FTA is a pivotal moment, as it opens up remarkable opportunities for Indian goods and services exporters.”

He added that the agreement aligns with India’s vision of building globally recognised brands, boosting rural incomes, and integrating more deeply with international value chains.

Ashish Kumar Chauhan, MD and CEO of NSE, welcomed the agreement’s provisions that exempt Indian professionals working in the UK from paying social security tax for up to three years, potentially saving ₹4,000 crore annually.

He highlighted that the new visa framework under the FTA will allow for longer professional stays, supporting mobility and collaboration.

Chauhan noted that the agreement sets a template for future FTAs with other major economies, including the US, EU, and Japan, particularly in emerging areas such as semiconductors, high-tech exports, and mobile manufacturing.

The Engineering Export Promotion Council (EEPC) India also lauded the FTA. The UK, India’s 6th largest engineering export market, recorded 11.7 per cent growth during FY2024–25.

With tariffs of up to 18 per cent eliminated, EEPC estimates exports to the UK could double to over $7.5 billion by 2029–30.

Pankaj Chadha, Chairman of EEPC India, stated, “This FTA is a timely and strategic breakthrough. It energises our engineering sector, especially MSMEs, and strengthens India’s role in global supply chains.”

Industry leaders strongly back the India-UK FTA, and they expect it to accelerate economic growth, create employment, and enhance export competitiveness, paving the way for a new era of global trade cooperation.

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