India-UK FTA to boost bilateral trade to $100 billion by 2030 and benefit exporters, say industry bodies
Industry organisations on Tuesday welcomed the India-UK Free Trade Agreement (FTA), asserting it will significantly support Indian exporters aiming to expand their presence in the UK market, particularly in the face of current global economic uncertainties. The agreement aspires to elevate bilateral trade to USD 100 billion by 2030. Experts cited by news agency PTI emphasised that the FTA’s success will hinge on effective implementation and the capacity of Indian businesses to capitalise on enhanced market access while navigating competition from UK imports. Industry leaders underscored that the FTA would provide a strong push to sectors such as fast-moving consumer goods (FMCG), healthcare, and innovation-led enterprises. Ficci President Harsha Vardhan Agarwal said, “Guided by Prime Minister Modi’s bold and strategic leadership, this milestone reflects India’s growing stature as a global economic force and a trusted partner in progress.” The agreement, Ficci noted, comes at a critical time when global trade dynamics remain uncertain, offering Indian exporters a valuable opportunity to strengthen their foothold in the UK.Also read: Piyush Goyal lauds India-UK Free Trade Agreement Echoing similar sentiments, Confederation of Indian Industry (CII) President Sanjiv Puri said, “This significant agreement reflects our shared commitment to deepening economic ties, bolstering technology collaboration, diversifying global supply chains, and fostering a more business-friendly environment.” “Guided by the 2030 roadmap, the timely agreement will help advance a comprehensive strategic partnership between India and the UK, steering bilateral trade towards the ambitious target of USD 100 billion by 2030,” he added. Sudarshan Venu, managing director of TVS Motor Company, highlighted the deal’s potential to enable Indian firms like TVS Motor to grow globally saying, “We really appreciate the effort taken by the government to make this historic India-UK Free Trade Agreement. Our British brand Norton will launch later this year and this agreement will help us scale faster and leverage common supply chains. We are excited as we further progress towards Viksit Bharat.” Rishi Shah, partner and economic advisory services leader at Grant Thornton Bharat, said, “The UK-India FTA… promises significant growth in bilateral trade… The deal’s success will ultimately depend on implementation and whether Indian businesses can leverage new market access while navigating competitive pressures from UK imports.” Mayank Jain, Partner at Khaitan & Co, added, “The substantial duty reductions across various tariff lines are expected to enhance market access and foster long-term economic benefits for both nations. Moving forward, the emphasis should be on implementing best practices and adopting a phased approach to further strengthen and deepen trade relations.”Also read: India, UK forge Free Trade Agreement, PM Modi terms it ‘historic milestone’The trade deal removes customs duties on 99 per cent of Indian goods entering British markets, whilst providing opportunities for Indian professionals to work in Britain, maintaining the UK’s current points-based immigration system. The United Kingdom and India, ranking as the world’s sixth and fifth-largest economies, concluded their negotiations after three years of periodic talks.The bilateral trade between India and the UK increased to $21.34 billion in 2023-24, up from $20.36 billion in 2022-23. During April-January 2024-25, the trade exchange amounted to $21.33 billion, exceeding the previous period’s figure of $20.26 billion. India continues to maintain a positive trade balance in this bilateral relationship.According to government representatives, this trade arrangement is advantageous for both nations. The agreement is expected to enable Indian consumers to access superior products at competitive prices, which would boost domestic consumption and economic development. Additionally, it provides British enterprises with opportunities in India’s large and growing marketplace, aligning with the UK government’s economic growth strategies, according to officials.Read more: What does the UK-India FTA mean for India? Top benefits – from cheaper cars, whisky to cheer for Indian professionals
