India Inc Hails India–UK FTA as 'Watershed Moment': Calls It a Big Boost

As the ink dries on the historic India–United Kingdom Free Trade Agreement (FTA), India's industry leaders are applauding the deal as a "transformational milestone" and a strategic pivot in the nation’s global trade journey.

The agreement, which promises to unlock over $23 billion in new trade opportunities, has been widely welcomed by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII), two of India’s most prominent business bodies. Their responses underscore the growing optimism among Indian exporters, MSMEs, and corporate leaders about a more globally integrated and investment-friendly trade environment.

“A Pivotal Step in India’s Trade Architecture” – FICCI

Reacting to the formal signing of the FTA, FICCI President Harsha Vardhan Agarwal called the agreement a landmark development aligned with India’s broader vision of Atmanirbhar Bharat and deeper economic integration.

“The signing of the India–UK Free Trade Agreement marks a key milestone in India’s evolving trade architecture,” Agarwal stated. “It complements the objectives of Atmanirbhar Bharat by empowering domestic industries to scale globally, engage competitively, and leverage value chains more effectively.”

According to FICCI, the agreement is expected to provide enhanced market access to Indian products in sectors like textiles, gems and jewellery, seafood, engineering goods, and processed foods. These sectors, often dominated by MSMEs, stand to gain substantially from reduced tariffs and a simplified export framework.

Anant Goenka, Senior Vice President of FICCI, termed the deal a “watershed moment,” noting its potential to bring certainty and scale to Indian exports.

“The comprehensive nature of this agreement lays the foundation for expanded trade and deeper bilateral economic cooperation,” he added.

Boosting Export Competitiveness and Inclusive Growth

The deal has also sparked enthusiasm among labour-intensive sectors, especially textiles and apparel, where India has long sought better market access in the UK and EU.

Harish Ahuja, Chairman of FICCI’s Foreign Trade and Trade Facilitation Committee and MD of Shahi Exports, emphasized how the FTA will strengthen India’s export competitiveness.

“This milestone will enhance India’s engagement in global value chains and unlock new opportunities for exporters, particularly in sectors like textiles and apparels,” Ahuja said.

Dr. Anish Shah, Immediate Past President of FICCI, went a step further to highlight the long-term strategic value of the agreement.

“This landmark trade agreement is a blueprint for a modern, values-led partnership that focuses on innovation, sustainability, and inclusive growth,” he remarked.

CII Lauds FTA as a Forward-Looking Partnership

The Confederation of Indian Industry (CII), which led a delegation of 16 top business leaders to the UK alongside Prime Minister Narendra Modi, echoed similar sentiments. The delegation, headed by Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, emphasized the commercial and symbolic importance of the deal.

“Indian industry across all sectors welcomes the India–UK FTA with great optimism,” said Mittal. “This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment.”

The delegation also engaged in discussions with senior UK government officials and business leaders to explore opportunities in skills development, digital transformation, clean energy, life sciences, and advanced manufacturing.

Aiming for $120 Billion Bilateral Trade by 2030

India and the UK are aiming to double their bilateral trade to $120 billion by 2030, with over 970 Indian companies already operating in the UK and contributing to jobs, taxes, and local economies. The FTA is seen as a vital step toward achieving this ambitious goal.

Chandrajit Banerjee, Director General of CII, described the agreement as a “defining moment” in India–UK relations.

“This FTA reflects a shared commitment to inclusive growth, economic resilience, and industrial transformation,” Banerjee said. “It creates a strong foundation for regulatory cooperation, market access, and next-generation partnerships.”

Mobility and Tech Partnerships to Gain Momentum

A significant feature of the agreement is the Social Security Agreement, which will exempt Indian professionals working in the UK from double contributions for up to three years—a move that is expected to benefit 75,000 Indian workers.

This aligns with earlier CII recommendations and is seen as a big win for India’s skilled workforce and services exports. The pact also supports professional mobility by allowing up to 1,800 Indian chefs, yoga instructors, and classical musicians to provide services in the UK temporarily.

Furthermore, the FTA builds on the Technology Security Initiative (TSI) launched earlier this year to boost cooperation in emerging and critical technologies—a move welcomed by industry stakeholders as a necessary alignment between economic development and national security.

As the India–UK FTA takes effect, Indian businesses are optimistic about scaling their global presence, attracting greater investment, and enhancing India’s export potential. From high-growth sectors to traditional industries, the deal is expected to create long-term economic value and deepen India’s role in the global trade network.

With Vision 2035 discussions on the horizon and the FTA offering immediate market access benefits, Indian industry is already gearing up to seize the new wave of opportunities.