India-UK Free Trade Agreement To Boost Bilateral Trade By €25.5 Billion Annually

Deputy Trade Commissioner for South Asia at the British High Commission, Anna Shotbolt, stated that the India-UK Free Trade Agreement (FTA) is projected to increase bilateral trade by €25.5 billion annually. She highlighted that the FTA includes tariff reductions on 90% of goods traded between the two countries.

“However, it is not only about tariffs, which are indeed a crucial aspect that will benefit many industries. Creative companies will also benefit through stronger copyright protections, and the services sector will see gains as well. The Double Taxation Avoidance Convention will also help workers on both sides, creating more transparency and certainty,” she said at an event organized by industry body PHDCCI in the national capital.

The India-UK FTA, signed on May 6 after nearly three years of negotiations, is one of the most comprehensive trade agreements India has ever entered into. Ranjeet Mehta, CEO and Secretary General of PHDCCI, emphasized the importance of the social security clause that supports Indian professionals going to the UK, urging stakeholders to fully leverage this FTA.

As PHDCCI celebrates its 120-year legacy, Mehta announced plans to mount a business delegation to the UK this September to explore opportunities arising from the agreement. “India’s vision of net zero by 2070 also requires businesses, especially MSMEs, to be sustainable and technologically equipped. Whether in services or products, India should collaborate more with the UK, which presents a large market for Indian MSMEs,” he added.

TS Vishwanath, Founder & Executive Chairman of VeK Policy Advisory & Resource Firm, said the FTA is about more than just trade—it’s about building bilateral expertise. “We should seriously explore how both countries can invest in each other through a strong ease of doing business environment. We must engage directly with industries to identify challenges and build robust relationships,” he explained.

Prof. Rakesh Mohan Joshi, Vice Chancellor of IIFT, noted that India’s retail market is worth USD 1 trillion, while the UK’s is approximately USD 386.3 billion, showing vast potential for both economies. He praised the inclusion of the Double Taxation Avoidance Convention as a positive step.

Kishore Jayaraman, OBE, Global Board Director & Chairman of the UK India Business Council, described the FTA as the start of a new era. “The FTA enables both nations to leverage their capacities and capabilities. Beyond trade, we must explore sectoral synergies, as India has the potential to significantly contribute to the economy of both nations,” he added.

Ajay Aggarwal, President of the Toy Association of India, highlighted key areas where Indian businesses can benefit in the UK market. He explained that the toy industry, which is rapidly growing and has shifted from import dependency to producing 80% domestically, offers enormous collaboration opportunities. For example, skilled products like leather toys can benefit the UK market. “India offers competitive products with better market offerings, and with tariff reductions, it will allow us to enhance our presence in the UK,” he concluded.

(From ANI)

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