India, UK trade pact to boost commerce, investments, job creation: Experts

New Delhi, Jul 24 (PTI) The free trade agreement signed between India and the UK on Thursday will give a boost to domestic manufacturing, exports, and investments between the two countries, experts say.

They said that the pact will also go a long way to mitigate external shocks while unlocking untapped market potential.

"This will also enable India and the UK to tailor partnership based on complementary strengths - be it in technology, manufacturing, or services," Anil Talreja, Partner at Deloitte India, said.

Shashi Mathews, Partner at CMS INDUSLAW, said that British exporters gain streamlined entry into India's expanding consumer market, while Indian manufacturers and service providers secure duty-free or preferential access to the UK.

"More than a straightforward exchange of tariff concessions, the India-UK Free Trade Agreement sketches an ambitious roadmap for a fruitful partnership, one that combines commerce, technology and sustainability into a unified strategic vision," he said.

Apparel Made-Ups and Home Furnishing Sector Skill Council (AMHSSC) welcomes the signing of the pact and said that it would give a huge opportunity to boost both exports and employment.

According to AMHSSC estimates, the FTA, by removing tariffs on 99 per cent of Indian exports, will double India's apparel exports to the UK within the next three years, and generate an incremental demand of skilled workers across the apparel manufacturing, retail, and allied sectors.

India's apparel exports to the UK grew from USD 1.33 billion in FY 2023-24 to USD 1.43 billion in FY 2024-25.

"With the elimination of trade barriers, this trajectory is set to accelerate sharply, positioning India as a preferred sourcing hub for high-value, compliant, and innovative apparel products," AMHSSC Chairman A Sakthivel said.

He added that the FTA is expected to significantly benefit labour-intensive sectors such as apparel, textiles, leather, marine, footwear, toys, and gems & jewellery.

Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas & Co, said that the agreement will create a more predictable environment for SMEs (small and medium enterprises) and foreign investors, reinforcing India's credibility as a rule-based manufacturing and supply chain partner aligned with its broader economic objectives.

"Notably, the successful conclusion of this FTA is expected to lend positive momentum to the ongoing India-EU FTA negotiations, as EU stakeholders have indicated interest in leveraging the UK-India model to fast-track and align aspects of their bilateral framework with India," Pandey said. PTI RR RR SHW