UKIBC sees India-UK free trade pact as historic milestone

New Delhi, July 24 The UK India Business Council (UKIBC) on Thursday welcomed the signing of the UK-India Free Trade Agreement (FTA) as a landmark deal that promises to unlock unprecedented trade and investment opportunities between two of the world’s largest and most dynamic economies.

The mega deal, signed during Indian Prime Minister Narendra Modi’s UK visit, marks a historic milestone in the bilateral relationship, the UKIBC said.

According to a UKIBC statement, India’s large and fast-growing economy, with a 1.4 billion market and an expanding middle class, offers UK businesses significant export and investment opportunities. Tariff reductions under the FTA are expected to boost UK exports. With the deal, Britain welcomes almost 6 billion pounds in new investment and export wins, which aim to create over 2,200 British jobs across the country, with the Indian firms expanding their operations in the UK and British companies securing new business opportunities in India.

The FTA will also bring significant benefits to India's services sector by creating opportunities in information technology and IT-enabled services (IT/ITeS), financial services, professional services such as management consultancy, architectural and engineering, other business services, and education services. One of the most significant aspects of the UK-India FTA is the enhanced market access it provides to both countries, the statement said.

It is worth noting that the UK-India total trade in goods and services (exports plus imports) between the UK and India was 42.6 billion pounds in the four quarters to the end of Q4 2024, an increase of 8.3 per cent from the previous year. This level of trade has almost doubled from before the pandemic in 2019, when the UK-India trade was 24.1 billion pounds, the statement said.

The economic implications of the India-UK FTA 2025 are profound. It is projected to increase the UK’s GDP by 3.3 billion pounds by 2035 and double bilateral trade by 2030. This growth trajectory is expected to create significant job creation in India, according to the statement.

UKIBC Chair Richard Heald said: "The UK-India FTA marks a historic milestone in the bilateral relationship. Businesses across both countries have long called for an agreement that reduces barriers, enhances market access, and creates a clear framework for long-term, sustainable growth. We congratulate both governments for their commitment and ambition in bringing this complex negotiation to fruition. Success in the FTA will support further economic growth for the world’s 4th and 6th largest economies. It will catalyse collaboration into other areas too."

"As India charges ahead towards Viksit Bharat@2047, UKIBC and more broadly, British businesses recognise that a successful FTA is a critical milestone in a longer-term journey and are keen to support India’s ambitions. As a trusted partner to both governments and businesses, UKIBC has actively supported the FTA journey through consultation, policy input, and sector-specific insight," he added.

The UKIBC has played an active role in supporting the FTA process, facilitating consultations with industry, providing evidence-based recommendations, and ensuring the voices of UK and Indian businesses—especially mid-sized and sector-specific players—are heard and reflected in the negotiations. As the UK and India gear up to implement the agreement, UKIBC will continue to support members in understanding and leveraging the FTA’s provisions, with a particular focus on sectors like digital trade, services, manufacturing, education, and innovation-led collaboration, the UKIBC statement added.

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