Tariff-free access to the UK market expected to create new opportunities for Indian exporters and professionals.
The India-UK Free Trade Agreement (FTA), due to come into force on 15 July, is expected to provide a major boost to several export-oriented sectors in India, particularly textiles, apparel, gems and jewellery, engineering goods and leather products. The agreement marks one of the most significant trade deals signed by India in recent years and is expected to deepen economic ties between the two countries.
Under the agreement, nearly 99 per cent of Indian exports will receive duty-free access to the British market, improving the competitiveness of Indian products against rivals from other exporting nations. Industry experts believe labour-intensive sectors such as textiles and garments stand to gain the most, as tariff barriers that previously raised costs for Indian exporters will be removed.
The gems and jewellery sector is also expected to benefit significantly. Exporters anticipate stronger demand from UK buyers following tariff reductions and easier market access. Major manufacturing centres, including Surat, are preparing for increased export opportunities once the agreement takes effect.
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Engineering goods, machinery, footwear and leather products are among the other sectors expected to see higher exports
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The agreement also provides safeguards for a large share of India’s steel exports, with 85 per cent remaining outside the scope of forthcoming UK safeguard measures
Beyond merchandise trade, the FTA includes provisions that support professional mobility and services. A parallel social security arrangement will reduce double contributions for many Indian professionals working in Britain, lowering costs for both employees and companies.
Officials from both countries expect the agreement to increase bilateral trade substantially over the coming years. Businesses are hopeful that improved market access, lower tariffs and greater mobility will encourage fresh investment, job creation and stronger commercial links between India and the UK.
