India-UK comprehensive Economic Trade Agreement (CETA) has been recently concluded to unlock important foreign direct investment (FDI) flows into India.
India-UK FTA : Strong Mutual Respect Signals FDI
Sanjay Nayar, President of ASSOCHAM and Founder-Chairman of Sorin Investment Fund, in an interview with ANI, emphasized that the agreement signals strong mutual respect, encouraging global investors to commit billions across strategic sectors. The deal will boost investments through private equity, venture capital, institutional capital, and corporate channels, benefiting both greenfield projects and expansions of existing firms.
Nayar highlighted that investors will leverage India’s skilled labor and cost advantages to scale operations, targeting not only the Indian market but also exports to the UK and beyond. A standout opportunity lies in the defence sector, where a new industrial roadmap promotes collaboration in manufacturing, technology, and joint research facilities. This initiative aims to enhance “Made in India” capabilities while building export capacity.
MSMEs and Startups to Lead Growth in FTA
Agri-tech and med-tech are other promising sectors, needing capital and advanced technology, especially in diagnostics and surgical equipment. The agreement also opens doors for joint ventures, mergers, and acquisitions.
Nayar pointed to industrial, medical, and defence automation as key areas expected to gain momentum, driven by MSMEs and startups. While the pact supports two-way investment, Nayar is particularly optimistic about attracting UK capital into India.
Announced in May 2025 by Prime Ministers Modi and Starmer, the India-UK FTA aligns with India’s Viksit Bharat 2047 vision, aiming to boost bilateral trade to USD 120 billion by 2030. The deal will also slash India’s average tariff on UK products from 15% to 3%, further strengthening economic ties.
(Inputs from ANI)
Also Read: India-UK Free Trade Agreement: See How Industry Leaders Applaud It As A Game-Changer?
