India-UK FTA: A New Dawn in Bilateral Economic Relations

The signing of the India-UK Free Trade Agreement (FTA) has garnered widespread acclaim from industry leaders and trade bodies, who describe it as a transformative milestone for the bilateral economic ties between the two nations. The Comprehensive Economic and Trade Agreement (CETA), signed on Thursday, is set to provide enhanced market access for goods and services.

The Confederation of Indian Industry (CII) expressed optimism, indicating that the FTA will reduce trade barriers, bolster investor confidence, and encourage joint ventures, particularly in sectors like textiles, apparel, leather, and marine products. The agreement is poised to unlock opportunities in clean energy, digital technologies, and advanced manufacturing, leveraging India's market growth and the UK's innovative strengths.

Industry leaders, including Sunil Bharti Mittal and Hemant Jain, lauded the FTA for its promise to stimulate innovation, ease market access, and enhance bilateral cooperation. The deal is expected to catalyze trade growth, enhance the competitiveness of Indian SMEs, and significantly increase bilateral trade. Key sectors such as manufacturing, services, and technology are anticipated to benefit as both countries aim to double trade value to USD 120 billion by 2030.

Anish Shah, Group CEO & MD of Mahindra Group, highlighted the trade agreement as a transformative moment on the global stage, offering a blueprint for a modern, values-driven partnership. The deal underscores India's rising stature as a trusted partner in the global economic order.

Additional benefits from the FTA, such as the reciprocal Social Security Agreement, allow Indian professionals in the UK to continue their home-country contributions for a period of three years, reflecting recommendations made by the CII. This agreement signifies a commitment to inclusive growth and enhanced regulatory cooperation between Indian and UK businesses.

(With inputs from agencies.)