Press Release

India–UK Free Trade Agreement: A Leap Forward in Strengthening Bilateral Ties

Welcoming the signing of the India–UK Free Trade Agreement (FTA), the Associated Chambers of Commerce and Industry

Welcoming the signing of the India–UK Free Trade Agreement (FTA), the Associated Chambers of Commerce and Industry stated that the Agreement marks a historic milestone in strengthening economic relations between the two dynamic nations. The agreement, aimed at doubling bilateral trade to USD 120 billion by 2030 and further increasing it by another USD 40 billion by 2040, reflects a shared ambition to deepen ties across trade, investment, innovation and sustainability.

 "ASSOCHAM congratulates Prime Minister Narendra Modi and Shri Piyush Goyal, Minister of Commerce and Industry for signing the India - UK FTA. The FTA is a game-changer for Indian industry. ASSOCHAM strongly believes that the deal will not only boost our export potential and manufacturing competitiveness, particularly in sectors like textiles and leather, but also open new growth avenues in innovation and services. We see this agreement as a strategic step that aligns with India’s vision of becoming a global manufacturing and knowledge hub." Sanjay Nayar, President, ASSOCHAM

 Mr. Manish Singhal, Secretary General, ASSOCHAM stated that "With this FTA, India reaffirms its role as a trusted global partner in both traditional sectors and emerging areas. The recognition of India’s wellness and cultural sectors adds a new dimension to trade diplomacy. ASSOCHAM stands fully aligned with this agreement and the opportunities it creates to elevate India’s global trade presence."–

Following closely after the India-EFTA deal, which is set to be operational from October 1, 2025, the India UK agreement is a strategic move in evolving India’s trade landscape. Together, these pacts reflect India’s renewed global trade outlook, with potential avenues opening toward FTAs with the EU and the US.

The India–UK FTA creates fresh avenues for Indian exports, especially in key labour-intensive sectors such as textiles, leather and information technology, while setting the stage for collaboration in next-generation domains like artificial intelligence, digital payments and climate sustainability. The substantial reduction in tariffs is expected to enhance India's price competitiveness and market share in the UK. Notably, the inclusion of Indian millets and other agricultural products under concessional tariff lines will empower Indian farmers and promote India's global leadership in sustainable and climate-resilient agriculture.

A major highlight of the deal is the three-year exemption from UK social security contributions for Indian professionals. This long-sought relaxation is expected to reduce costs and improve mobility for Indian talent.

The FTA recognises and promotes India's rich cultural and wellness economy by opening doors for Ayurveda, Yoga and Indian music in the UK, blending trade with cultural diplomacy and underpinning the power of India's soft influence.

Beyond trade, the FTA aligns the two nations strategically. By simplifying rules of origin, encouraging cooperation on intellectual property (IP) and lowering non-tariff barriers, the agreement sets a new benchmark for future trade negotiations.

The announcement of the UK–India Vision 2035 by the Prime Ministers of both countries underlines the broader scope of this relationship. The new vision goes beyond trade-focusing on joint prosperity, innovation ecosystems and a reinvigorated defence partnership through the proposed Defence Industrial Roadmap.

As the world navigates economic uncertainty, the India–UK FTA represents a timely and forward-looking step toward resilient, inclusive and sustainable growth. It not only strengthens bilateral ties but positions India as a key global player in the evolving trade and geopolitical landscape.