After 14 rounds of negotiation spanning two and a half years, Prime Minister Narendra Modi and his British counterpart Keir Starmer inked the Free Trade Agreement (FTA) on Thursday. The highly anticipated trade deal marks a landmark step in the trade and economic ties between India and the UK.
The UK will lower duties on 99 per cent of Indian exports, while India will slash tariffs on 90 per cent of UK goods, as part of the historic pact. It will also reduce regulatory burden and sector-specific compliance to help smooth trade.
The pact will likely reduce the cost of imported goods for Indian consumers, including luxury cars, cosmetics, medical devices, gin and scotch whiskey. It is projected that India’s leather industry will grow its market share in the UK by 5 per cent.
India Inc Hails Historic Deal
Facilitated by the Confederation of Indian Industry (CII), 16 key leaders from the Indian Industry were part of PM Modi’s delegation. Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises and co-chair of the India-UK CEO forum, led the CII delegation.
Calling the pact historic and a game-changer for both countries, the Industry leaders welcome the FTA between the two nations.
“Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment,” said Mittal.
Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors, he added.
Business Leaders Across Sectors Express Optimism
Dr Anish Shah, Group CEO and MD, Mahindra Group, called the landmark agreement a transformative moment in the global economic landscape and noted that it is a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order.
“It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration,” Shah said.
Kirit Bhansali, Chairman, Gem and Jewellery Export Promotion Council, said that this landmark accord unlocks exciting new opportunities for the gem and jewellery sector.
Also Read: Today Is A Historic Day In Our Relations: PM Modi On India–UK Free Trade Agreement
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