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In a landmark moment for bilateral economic relations, Indian industry leaders and international stakeholders have welcomed the finalisation of the India-UK Free Trade Agreement (FTA), praising it as a transformative milestone that will enhance exports, strengthen strategic ties, and foster inclusive growth.
The Free Trade Agreement, signed after intense rounds of negotiations between Indian Commerce Minister Piyush Goyal and British Business and Trade Secretary Jonathan Reynolds, marks a significant chapter in the evolving partnership between the two nations. It also includes a Double Contribution Convention, aimed at facilitating social security cooperation for professionals working across borders.
A Boost for Trade and Strategic Partnerships
Harsha Vardhan Agarwal, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), lauded the FTA as a timely achievement driven by Prime Minister Narendra Modi’s “bold and strategic leadership.”
“This agreement brings new momentum to sectors like FMCG, healthcare, and innovation-driven enterprises. It reflects India’s growing stature as a global economic force and a trusted partner in progress,” said Agarwal. FICCI noted that bilateral trade, already valued at over USD 50 billion, is poised to grow multifold with the agreement now in place.
Sanjiv Puri, President of the Confederation of Indian Industry (CII), echoed the sentiment, calling the deal a “transformative accord” that will deepen economic ties and align with the 2030 Roadmap for a strategic partnership.
“This FTA advances bilateral trade towards the ambitious USD 100 billion target by 2030, strengthening supply chains and enhancing technological collaboration,” said Puri.
Industry Reactions from Both Sides
Richard Heald, Chair of the UK India Business Council (UKIBC), emphasized that the agreement reflects the deep trust and mutual ambition underpinning UK-India relations.
“It will unlock new opportunities for businesses, drive economic growth, and support innovation across sectors,” Heald said, adding that UKIBC worked closely with both governments during the negotiation process and stands ready to assist businesses in navigating the new trade landscape.
India Global Forum and the UK India Future Forum also hailed the deal as a landmark economic achievement. Founder Manoj Ladwa congratulated Prime Ministers Modi and Keir Starmer, calling the agreement “a testament to diplomacy, pragmatism, and partnership.”
Support from Export Sectors and Trade Associations
Industry associations across India expressed optimism about the impact of the FTA on labor-intensive sectors. A Sakthivel, Vice Chairman of the Apparel Export Promotion Council (AEPC), called it a “Himalayan achievement” that will significantly benefit textile exports and boost employment.
Hemant Jain, President of PHDCCI, highlighted the FTA’s role in driving strategic and economic growth. Ajay Srivastava, Founder of the Global Trade and Research Initiative, underlined tangible benefits for Indian exports such as textiles, footwear, carpets, cars, and marine products—all of which currently face UK tariffs of 4–16%.
However, Srivastava also cautioned about the UK’s Carbon Border Adjustment Mechanism (CBAM), warning that it could undermine the agreement’s balance if Indian goods face additional levies while UK exports enter India duty-free.
SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), praised the FTA for its potential to integrate Indian businesses more deeply into global value chains. He said it reflects a shared economic vision that will lead to a sustainable and forward-looking trade relationship.
USISPF Endorsement and Broader Global Implications
Across the Atlantic, the U.S.-India Strategic Partnership Forum (USISPF) congratulated both governments on the finalisation of the deal, calling it a “milestone” for strengthening global economic ties. USISPF also expressed hope for progress in ongoing U.S.-India bilateral trade talks, aiming for an interim reciprocal tariff agreement as a precursor to a broader deal.
Government’s Statement and Vision
Prime Minister Narendra Modi, speaking at the ABP Network India@2047 Summit, called the agreement a “historic day for India” and confirmed that the finalised deal reflects a shared vision between “two of the world’s biggest open-market economies.”
“This FTA will add a new chapter in our development story and open new opportunities, especially for MSMEs,” Modi said.
The Commerce and Industry Ministry described the agreement as “historic and ambitious,” noting that 99% of Indian exports will now benefit from zero-duty access in the UK market. The pact is expected to boost sectors like IT and IT-enabled services, professional services, financial services, and educational services, while also enhancing job creation and economic growth across both countries.
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