Landmark Free Trade Agreement projected to boost UK GDP by £4.8 billion and elevate bilateral ties to a new strategic level
The recently concluded India-UK Free Trade Agreement (FTA) has been hailed as a historic and transformative pact during a high-profile debate in the UK House of Commons. UK Business and Trade Secretary Jonathan Reynolds described it as a “genuine competitive advantage” for Britain — particularly in advanced manufacturing sectors — and lauded it as “the best deal that India has ever offered.” , reported timesofindia.indiatimes.com.
Fielding questions from MPs, including British Sikh Labour MP Gurinder Singh Josan, Reynolds emphasised how the FTA opens up significant market access in India, traditionally known for its protectionist economic stance. “Whether it is for goods, services or regional economic uplift, there is so much good stuff here to celebrate,” he stated.
He further noted that the agreement strategically positions the UK in sectors like automotive and machinery — key industries in regions like the West Midlands.
Economic Game-Changer for Both Nations.
The Department for Business and Trade (DBT) has projected that the FTA will generate an annual GDP increase of £4.8 billion and raise wages by £2.2 billion over the next ten years. Long-term bilateral trade is expected to surge by an additional £25.5 billion annually, offering a major boost to UK businesses and consumers alike.
FTA expected to enhance bilateral trade by £25.5 billion and create major economic uplift with £2.2 billion annual wage growth over the next decade
The timing of the parliamentary debate also coincides with the upcoming UK-India Week, part of the India Global Forum (IGF) summit to be held in London. Indian Commerce and Industry Minister Piyush Goyal is among the keynote speakers expected to address the forum.
India’s Role in the UK’s Growth Story.
The event will also see the release of the 2025 edition of the ‘India Meets Britain Tracker’, a report jointly produced by Grant Thornton and the Confederation of Indian Industry (CII). It highlights the influence and expansion of Indian-owned enterprises across the UK economy.
Anuj Chande, Partner and Head of South Asia Business Group at Grant Thornton, commented: “Indian companies continue to play a pivotal role in the UK’s growth story — from job creation to innovation. This year’s tracker reflects their growing confidence, scale, and resilience.”
India Global Forum founder Manoj Ladwa added, “Indian businesses are no longer just investing abroad — they are transforming global economies.”
According to the previous tracker, 971 Indian-owned companies were operating in the UK — a record figure that continues to rise. With India and the UK now among the world’s top six economies, this FTA is being viewed as a cornerstone of one of the most dynamic global investment corridors.
