May 8, 2025
The agreement sets an ambitious goal of elevating bilateral trade to US$100 billion by 2030
Customs duties will be removed on 99% of Indian goods entering the UK, while professional mobility is also enhanced
Sectors like FMCG, healthcare, and manufacturing are expected to benefit, as are Indian firms expanding their global footprints
Experts stress that the agreement’s impact will depend on robust implementation and Indian industry’s ability to leverage new market access
Industry associations and business leaders welcomed the long-awaited India-UK Free Trade Agreement (FTA), calling it a significant step toward unlocking new growth opportunities for Indian exporters, professionals, and businesses with global ambitions. The deal, which removes customs duties on 99% of Indian goods entering the UK, comes at a time of mounting global economic challenges and is expected to propel bilateral trade to US$100 billion by 2030.
In a statement, FICCI President Harsha Vardhan Agarwal credited Prime Minister Modi’s leadership for achieving what he described as a “milestone” deal. “This reflects India’s growing stature as a global economic force and a trusted partner in progress,” he said, noting the FTA offers timely support for Indian exporters seeking stability amid volatile global trade dynamics.
Echoing that sentiment, CII President Sanjiv Puri said the deal underscores a “shared commitment to deepen economic ties, bolster technology collaboration, diversify global supply chains, and build a more business-friendly environment.” He added that the agreement aligns with the India-UK 2030 roadmap and sets the foundation for a comprehensive strategic partnership.
Among Indian businesses likely to benefit is TVS Motor Company, which owns British brand Norton. Managing Director Sudarshan Venu remarked, “This historic agreement helps us scale faster and leverage common supply chains. It’s a strong boost as we advance toward Viksit Bharat.”
Legal and economic experts highlighted the need for effective implementation to realise the full benefits of the FTA. Rishi Shah, Partner at Grant Thornton Bharat, called the deal “promising” but warned that “its success will ultimately depend on how well Indian businesses navigate the competitive pressures of UK imports.”
Mayank Jain, Partner at Khaitan & Co, noted that duty reductions across tariff lines will significantly enhance market access and urged a “phased approach” to implementing best practices and deepening trade relations.
Trade between the two nations is already growing. In FY2023–24, bilateral trade rose to US$21.34 billion, up from US$20.36 billion in the previous year. From April to January 2024 to April 25, trade reached US$21.33 billion, surpassing last year. India continues to maintain a positive trade balance in this relationship.
Government representatives called the agreement mutually advantageous, noting that Indian consumers benefit from better products at competitive prices. At the same time, UK enterprises gain access to India’s expanding domestic market — a key goal in the UK’s post-Brexit economic strategy.
The FTA also includes provisions for Indian professionals to work in the UK, while maintaining Britain’s existing points-based immigration system — a move expected to benefit Indian talent in sectors like IT, healthcare, and education.
Concluded after three years of negotiations, the India-UK FTA represents a landmark achievement for both nations, economically and strategically, as they seek to deepen ties amid a shifting global trade order.
Source: Times of India