The proposed India-UK free trade agreement (FTA) is likely to benefit India’s textiles, apparel, leather, gems and jewellery, pharmaceuticals, marine and engineering goods, the Federation of Indian Export Organisations (FIEO) said Wednesday.
The agreement will have a positive impact on job creation in India, particularly in labour-intensive sectors such as textiles, leather, and jewellery, and could encourage greater bilateral investment flows, it said.
The FTA is likely to be signed on July 24, during Prime Minister Narendra Modi’s visit to the UK and expected to double bilateral trade by 2030, currently at about $60 billion.
Commerce and industry minister Piyush Goyal is accompanying Modi.
“This visit comes at a pivotal moment as negotiations for a comprehensive FTA are in the final stages. We are hopeful that high-level discussions will lead to greater consensus on trade facilitation measures and help realise the shared goal of doubling bilateral trade by 2030,” said FIEO president SC Ralhan.
He said that the FTA is “poised to deliver a significant boost across multiple industries.”
The two sides announced the conclusion of the FTA negotiations on May 6 this year. The agreement will lead to tariff elimination for India on about 99% of the tariff lines by the UK, including most labour-intensive products. The UK will gain tariff-free access to India for 85% of its tariff lines spread over ten years.
The FTA is also expected to streamline regulatory approvals for Indian pharmaceutical products in the UK.
India’s exports to the UK rose 12.6% to $14.5 billion while imports grew 2.3% to $8.6 billion in FY25.
“Moreover, it could ease mobility and open up new opportunities for Indian IT, business services and professional services firms,” Ralhan said.
On the UK side, the pact is anticipated to reduce tariffs and expand exports in automotive, alcoholic beverages notably whisky and gin, and high-end processed foods. Additional sectors that may benefit include cosmetics, aerospace, medical devices, electrical machinery, lamb, salmon, soft drinks, chocolates, and biscuits.
