The recently signed India-UK Free Trade Agreement (FTA) represents a significant shift in global trade dynamics, strategically reducing dependence on China and bypassing US-imposed tariffs, according to a report by the State Bank of India’s Economic Research Department released on Wednesday.

Describing the FTA as a “landmark” in both scope and symbolism, the report highlights its coverage of over 90% of tariff lines and calls it a recalibration of the post-globalisation economic order. The agreement arrives amid increasing trade between India and the UK, currently valued at approximately $60 billion and projected to double by 2030.

India’s exports in FY25 showed resilience despite a 6.1% drop in imports. The new FTA spans goods, services, and technology, and aims to promote inclusive growth, build resilient supply chains, and boost employment across both nations.

Key beneficiaries on the Indian side include labour-intensive sectors such as textiles, toys, marine products, and auto components. UK liberalisation in sectors like IT, finance, education, and consumer goods is expected to open new doors for Indian exports.

Although the UK’s immigration policy remains largely unchanged, the deal facilitates limited professional mobility. Around 1,800 to 2,000 annual visas are expected to be issued to Indian chefs, musicians, and yoga practitioners—blending trade pragmatism with cultural diplomacy.

Other notable features of the agreement include:

• Enhanced market access in telecom and renewable energy sectors
• Focus on digital trade and green goods
• Reciprocal social security benefits
• UK companies gaining access to Indian public procurement as class-2 suppliers

The SBI report describes the FTA not as a mere transactional deal but as a “dialectical moment” that merges national interest with a broader moral and strategic vision.

India is concurrently negotiating FTAs with the EU, Australia, Peru, Sri Lanka, and Oman, while reviewing existing agreements with South Korea and ASEAN. This signals a larger restructuring of India’s global trade architecture.

With 13 FTAs already signed, India’s proactive engagement in reshaping global trade rules underscores its evolving role as a key geopolitical and economic player.