Mumbai, July 25 (IANS) The Trade Promotion Council of India (TPCI) has lauded the India-UK Free Trade Agreement (FTA) as a landmark economic achievement, opening transformative opportunities for Indian exporters across key sectors.
In FY2024–25, India’s total trade with the United Kingdom reached a new high of $23.1 billion, reflecting a continued upward trajectory driven by robust export performance. India’s exports rose to $14.5 billion, a 12.4 per cent increase over the previous year, while imports grew at 2.3 per cent at $8.6 billion, resulting in a record trade surplus of $5.9 billion.
India’s agricultural exports to the UK are poised to grow by over 20 per cent in the next three years, driven by the FTA’s zero-duty access on over 95 per cent of Indian agri and processed food products — including fruits, vegetables, cereals, coffee, tea, spices, oilseeds, alcobev, and ready-to-eat items.
India’s seafood industry will benefit from zero-duty access to the UK’s $5.4 billion marine market, bringing tariff parity with major EU players like Germany and the Netherlands. This will directly benefit fisherfolk across Andhra Pradesh, Odisha, Kerala, Gujarat, and Tamil Nadu.
“The signing of the visionary India-UK FTA is a pivotal moment, as it opens up remarkable opportunities for Indian goods and services exporters,” said Mohit Singla, Chairman, TPCI.
The agreement aligns with the vision of building and accelerating the creation of globally recognised Indian brands and sets the stage for doubling India’s exports, driving rural prosperity, and accelerating deeper integration with global value chains.
According to Ashish Kumar Chauhan, MD and CEO, NSE, this landmark pact also brings major relief to Indian professionals working in the UK, who will now be exempt from paying up to three years of social security tax — resulting in estimated annual savings of Rs 4,000 crore.
“The new visa framework further enables extended professional stays in the UK. This deal sets a template for future FTAs with other economies such as the US, EU, and Japan, removing longstanding trade barriers and opening up cooperation in high-tech exports, mobile manufacturing, and semiconductors,” said Chauhan.
EEPC India welcomed the signing of the India-UK FTA. The UK, India’s 6th largest engineering export destination, recorded a strong 11.7 per cent growth in trade during 2024–25.
The FTA’s elimination of tariffs, which previously reached up to 18 per cent on key engineering products, is expected to catalyse export growth.
EEPC India estimates that engineering exports to the UK could nearly double to over $7.5 billion by 2029–30.
Pankaj Chadha, Chairman of EEPC India, said “The India–UK FTA is a timely and strategic breakthrough that will energise our engineering sector. It opens new opportunities for exporters, especially MSMEs, and strengthens our position in global value chains”.
—IANS
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