India-UK FTA: India Inc says lower trade barriers, more market access to create jobs, boost GDP

New Delhi, Jul 25 (PTI) Industry leaders across domains welcomed the signing of the India-UK free trade agreement, saying reduction of trade barriers and increased market access for several industries will enable greater flow of goods and resources, boost bilateral trade, create jobs and support higher economic growth.

The pact, officially called Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.

Amit Kalyani, Vice-Chairman & Joint MD, Bharat Forge Ltd., said, "India-UK FTA marks a breakthrough for India's engineering and manufacturing industries, with zero-duty access on about 99 per cent of tariff lines covering almost 100 per cent of trade value. Indian manufacturers can now tap into the UK market with greater competitiveness, improving their global footprint." He observed that this agreement will have positive impact on trade, investment, and economic growth in both the countries.

P D Singh, CEO, India & South Asia, Standard Chartered Bank, said: "The agreement is important, considering global business headwinds buffeting economies across the globe. Lowering of trade barriers and increased market access across several industries such as financial services, automobiles, pharmaceutical and infrastructure will enable greater flow of coveted goods and resources across the two markets, increase exports and imports, create necessary jobs, drive consumer demand, bring investments and add to GDP." Sanjaya Mariwala, Executive Chairman and Managing Director of OmniActive Health Technologies, said with regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the UK, and that can lead to more affordable services and better collaboration.

Vasudha Madhavan, CEO & Founder at Ostara Advisors, said the India-UK Free Trade Agreement signals a significant step forward for the climate-tech sector, establishing a more predictable policy environment and stronger safeguards for investment.

"It is likely to prompt UK investors to adopt a more strategic, long-term approach to India's clean energy transition, paving the way for deeper partnerships in electric mobility, green hydrogen, and climate-resilient infrastructure," she added.

Vivek Tandon, Founder, revalyu Group, termed the India-UK Free Trade Agreement as a transformative milestone for India's manufacturing and export landscape, ensuring zero-duty access on nearly all goods for both nations.

"This removes the historical 8-12 per cent import tariff, creating a level-playing field with major exporters like Bangladesh and Vietnam boosting bilateral trade by an expected 25 billion pounds per annum by 2040. Among those most poised to benefit is India's textile and garment industry, which is projected to double exports to the UK over the next five to six years, driven by an anticipated 11 per cent CAGR," he said.

Ajay Piramal, Chairman and Executive Director at Piramal Enterprises, said the FTA is "more than a trade agreement -- it's a catalyst for job creation, youth empowerment, and building a future-ready workforce".

"The historic free trade agreement (FTA) signed between the UK and India will significantly improve market access for Indian companies and will boost bilateral trade by around USD 34 billion annually. This agreement will pave the way for duty-free access to 99 per cent of Indian exports, particularly from labour-intensive sectors like textiles, marine products, leather, footwear, engineering goods, auto components, engines, and chemicals.

"Overall, this development will have a very positive impact on the country's economy and could provide a major boost to the manufacturing sector, especially to the MSME sector," Arun Poddar, CEO at Choice International Ltd, said.

Amit Baid, Head of Tax at BTG Advaya, said that amid shifting global supply chains, the India-UK trade deal unlocks a two-way corridor of opportunity "Scotch whisky and luxury cars will enter India more affordably, while Indian textiles, seafood, and engineering goods gain ground in the UK. The real success, however, will depend on how effectively both sides convert this market access into meaningful outcomes for jobs, supply chains, and investors," he added. PTI RSN HG HVA