Historic India-UK Free Trade Agreement Transforms Economic Landscape

The landmark India-UK Free Trade Agreement has been signed, promising to bolster trade, investment, and cooperation between the nations. Business leaders celebrate this transformative pact, which aims to boost trade by USD 20 billion, create jobs, and foster innovation. The agreement provides strategic benefits like reduced tariffs and enhanced market access.

The historic signing of the India-UK Free Trade Agreement (FTA) has been met with widespread acclaim from industry leaders, who view it as a pivotal step in enhancing trade, investment, and economic cooperation between the two nations. The agreement, inked on Thursday with Prime Ministers Narendra Modi and Keir Starmer in attendance, offers increased access to goods and services across both borders.

On May 6, the leaders announced the culmination of the eagerly anticipated FTA, designed to eliminate or reduce tariffs on imports and exports—making Indian goods more competitive in the UK and vice versa. The collaborative effort aims to boost bilateral trade to USD 120 billion by 2030. Vedanta's Anil Agarwal lauded the pact as a 'great achievement' and a 'win-win' for both countries, expected to increase trade by USD 20 billion and spur job creation.

Hero FinCorp's Abhimanyu Munjal hailed the deal as 'a launchpad for India's entrepreneurs,' contributing to the 'Atmanirbhar Bharat' vision by providing a global platform for scaling businesses. Pallavi Bakhru of Grant Thornton Bharat highlighted the benefits for cities like Ludhiana and Manchester, pointing to reduced tariffs and enhanced talent mobility, alongside the social security agreement as a significant business boon. Concerns linger over sector-specific impacts, yet leaders emphasize the FTA's role as a catalyst for bolstering competitiveness and innovation.

(With inputs from agencies.)