Industry hails modern, forward-looking trade partnership

Leading Indian business tycoons on Thursday hailed the India-UK free trade agreement as a "transformational milestone" to deepen economic engagements between the two countries.

Businesses across both countries are set to "gain tremendously" from the deal, Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, said.

"Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment," said Mittal.

The business tycoon is also Co-Chair of the India-UK CEO Forum.

Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors," he said.

Once implemented following British parliamentary ratification, CETA is expected to reduce trade barriers, enhance investor confidence, and promote joint ventures and technology transfers, especially in labour intensive sectors like textiles and apparel, leather and leather goods, gems and jewellery, marine products, among others. 

The agreement will provide a strong framework for unlocking new opportunities in clean energy, digital technologies, life sciences, and advanced manufacturing.

India's rapidly growing market and manufacturing capabilities, combined with the UK's strengths in innovation, finance, and high-end services, will further accelerate bilateral economic relations, the Confederation of Indian Industry (CII) said.

Another key benefit of the FTA is a reciprocal Social Security Agreement, allowing Indian professionals in the UK to continue home country contributions for up to three years.

"CII has been a longstanding advocate for a comprehensive and forward-looking India-UK Free Trade Agreement. This FTA marks a defining moment in our bilateral relationship, reflecting a shared commitment to inclusive growth, economic resilience, and industrial transformation," said Chandrajit Banerjee, Director General of CII.

Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), described the trade deal as a "landmark accord" that unlocks exciting new opportunities for the country's gem and jewellery sector.

"Currently, exports to the UK stand at USD 941 million; with the duty concessions in place, this figure is poised to surge to USD 2.5 billion within the next three years, elevating overall bilateral trade in our sector to an estimated USD 7 billion," said Bhansali.

“This is a watershed moment in India–UK economic relations. The signing of the FTA under the visionary leadership of Prime Minister Narendra Modiji, marks the beginning of a new era of strategic collaboration between the two nations. By lowering tariffs, easing market access, and deepening services and investment flows, this landmark deal unlocks immense potential for both economies,” said Prashant Ruia, Group Chief Executive, Essar.