NEW DELHI– The recently signed free trade agreement (FTA) between India and the United Kingdom represents a strategic turning point in global trade policy, moving beyond reliance on China and navigating the challenges of U.S. tariffs, according to a new report by the State Bank of India’s Economic Research Department.
The landmark deal, which slashes tariffs across 90 percent of product lines, is more than a significant quantitative achievement. SBI’s analysis frames it as a symbolic recalibration of India’s post-globalization trade strategy and a timely reconfiguration of the UK’s economic agenda in the post-Brexit landscape.
The FTA comes amid strengthening economic ties between India and the UK, with bilateral trade currently valued at approximately $60 billion and expected to double by 2030. India’s exports in fiscal year 2025 have outpaced a 6.1% decline in imports, and the new agreement is poised to further drive growth across goods, services, and technology sectors.
The deal is designed to enhance inclusive development, reinforce supply chain resilience, and generate employment. It opens up key UK sectors—such as information technology, financial services, education, and consumer goods—while creating export opportunities for India in labor-intensive industries like textiles, toys, marine products, and auto components.
While immigration policies remain largely unchanged, the agreement introduces targeted professional mobility, allowing around 1,800 to 2,000 visas annually for Indian chefs, musicians, and yoga practitioners. SBI described this element as “a fusion of economic pragmatism and cultural diplomacy.”
Key highlights of the FTA include expanded market access in telecom and renewable energy, provisions to facilitate digital trade, emphasis on environmentally sustainable goods, reciprocal social security agreements, and the UK’s entry into Indian public procurement as a class-2 supplier.
The SBI report positions the India-UK deal as part of a broader transformation in India’s global trade architecture. New negotiations are underway with the European Union, Australia, Peru, Sri Lanka, and Oman, while India is reviewing existing FTAs with South Korea and ASEAN member states.
“The India-UK FTA is not merely a transactional accord,” the report stated. “It represents a pivotal moment in 21st-century trade philosophy—where national interest and moral purpose converge in a new synthesis of strategic liberalism.”
India has now signed 13 FTAs and is actively expanding and modernizing its trade framework to reflect shifting geopolitical and economic realities. (Source: IANS)
