New Delhi– India’s top trade bodies and business leaders have welcomed the landmark India–UK Free Trade Agreement (FTA), calling it a transformative milestone in bilateral relations achieved under the leadership of Prime Minister Narendra Modi.
The agreement, seen as a pivotal step toward deepening economic ties and expanding trade, was praised for its potential to accelerate investment, strengthen global supply chains, and enhance India’s competitiveness in key sectors.
Sanjiv Puri, President of the Confederation of Indian Industry (CII), hailed the FTA as a breakthrough in India’s international trade strategy. “CII commends the Government of India for finalizing this landmark accord,” he said. “It reflects our shared commitment to expanding economic cooperation, driving technology collaboration, and promoting a more business-friendly environment.”
Framed by the India–UK 2030 Roadmap, the agreement is expected to push bilateral trade toward the ambitious target of $100 billion by the end of the decade.
S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), noted that the FTA would eliminate or significantly reduce tariffs on a wide range of Indian goods, giving Indian exporters greater access to one of the world’s wealthiest consumer markets. He highlighted specific sectors expected to benefit, including textiles and apparel, which will become more competitive compared to exports from Bangladesh and Vietnam, as well as leather, footwear, pharmaceuticals, gems and jewelry, and processed agricultural products.
Ralhan also emphasized the agreement’s long-term impact on investor confidence, pointing to provisions that address investment facilitation, intellectual property rights, digital trade, and dispute resolution mechanisms. These, he said, would strengthen India’s position as a preferred destination for investment in the Indo-Pacific.
The UK India Business Council (UKIBC) also celebrated the agreement as a major step forward in building a modern economic and strategic partnership. The council noted that the deal would lower trade and investment barriers while fostering cooperation in sustainability, innovation, and industries such as technology, manufacturing, education, services, and healthcare.
UKIBC Chair Richard Heald said the agreement reflected “deep trust, shared values, and mutual ambition” between the two nations. “This deal will unlock new opportunities, drive economic growth, create jobs, and support innovation across sectors,” he said. “Our members are excited about the potential, and UKIBC stands ready to help businesses navigate this new framework.”
According to official data, UK–India bilateral trade reached £42 billion in the four quarters ending Q2 2024, up 9.7% year-over-year. This marks a significant increase from pre-pandemic levels, when trade stood at £24.1 billion in 2019.
Sanjay Nayar, President of Assocham, echoed the praise and credited Prime Minister Modi for his leadership in bringing the agreement to fruition. “This path-breaking agreement and the Double Taxation Avoidance Convention represent a win-win for both countries,” Nayar said. “It will deepen our strategic partnership and fuel growth, investment, and innovation across the board.”
The landmark FTA is widely expected to mark a new chapter in India–UK relations, with both governments and industries anticipating robust economic benefits and greater collaboration in the years ahead. (Source: IANS)
