India-UK FTA hailed as game-changer for trade and export growth

India-UK FTA hailed as game-changer for trade and export growth

The Trade Promotion Council of India (TPCI) has hailed the India-UK Free Trade Agreement (FTA) as a transformative step that opens up major export opportunities for Indian businesses across multiple sectors.

India’s bilateral trade with the UK reached a record $23.1 billion in FY2024–25, with exports growing 12.4% to $14.5 billion. Imports stood at $8.6 billion, creating a trade surplus of $5.9 billion — the highest to date.

The agreement provides zero-duty access for over 95% of Indian agricultural and processed food exports, including tea, spices, cereals, fruits, vegetables, coffee, and ready-to-eat products. TPCI projects over 20% growth in agri-exports to the UK over the next three years.

India’s seafood sector is set to benefit from tariff parity with EU competitors, thanks to zero-duty access to the UK’s $5.4 billion marine products market. This move will directly benefit fisherfolk in coastal states like Gujarat, Kerala, Odisha, Tamil Nadu, and Andhra Pradesh.

TPCI Chairman Mohit Singla called the FTA a “visionary step” that will boost rural prosperity and strengthen Indian brands on the global stage.

Engineering exports are also expected to surge. EEPC India noted that the UK, India’s 6th largest engineering export market, saw 11.7% growth in 2024–25. With the removal of tariffs up to 18%, engineering exports could double to $7.5 billion by 2029–30.

Professionals also gain from the pact, with Indian workers in the UK now exempt from paying social security tax for up to three years — potentially saving Rs 4,000 crore annually. The new visa framework allows for longer professional stays.

Experts say the FTA sets a benchmark for future deals with the US, EU, and Japan.

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