Describing the Free Trade Agreement (FTA) between India and the United Kingdom as “fantastic,” Union Commerce and Industry Minister Piyush Goyal said the deal has unlocked numerous opportunities for India while safeguarding all its interests.
In a major step towards building a stronger economic partnership, India and the United Kingdom have signed the Comprehensive Economic and Trade Agreement (CETA).
“A fantastic FTA has been signed between India and the UK today. Through this FTA, India opened the avenue to several opportunities by safeguarding all its interests,” Goyal said.
“Every sector that remains sensitive for India, including our farmers and MSMEs, such as dairy, rice, and sugar, has not been opened. All these sectors have been safeguarded. The necessities for India, where India will benefit from getting things from the UK, have been especially focused on,” he added.
He said that labour-oriented sectors like textiles, footwear, leather, toys, furniture, and pharmaceuticals will be open for Indian businessmen in the United Kingdom, asserting that there will be immense opportunities for workers, farmers, and women of India.
The Union Minister pointed out that people from India who come to the UK to work for a short duration, will be able to deposit the money in their Provident Fund account in India.
Further, the Indian automobile industry has warmly welcomed the India-UK FTA. Shailesh Chandra, President of the Society of Indian Automobile Manufacturers (SIAM) and Managing Director- Tata Motors Passenger Vehicles, said, “SIAM remains committed to working closely with the Government of India to ensure the benefits of the agreement translate into greater growth, global competitiveness, and technological progress for the Indian automotive industry.”
Richard Heald OBE, Chair, UK-India Business Council, said, “Businesses across both countries have long called for an agreement that reduces barriers, enhances market access, and creates a clear framework for long-term, sustainable growth. Success in the FTA will support further economic growth for the world’s 5th and 6th-largest economies. It will catalyse collaboration into other areas too.”
Ian Stuart, CEO of HSBC UK, said, “This is a vibrant and fast-growing corridor and will bring huge opportunities for both British and Indian businesses as they seek to grow internationally.
“As the world’s largest trade bank with deep roots in both countries, we look forward to supporting our clients to take advantage of the full benefits of this historic agreement.”
Speaking about the impact on the Pharma sector, the Pharmaceuticals Export Promotion Council Chairman Namit Joshi said, “With India’s pharmaceutical exports to the UK reaching USD 914 million in FY24, the agreement strengthens supply chains, enhances access to affordable medicines, and drives FDI.”
“The partnership paves the way for collaborations in bulk drug imports, CDMO, and joint research, empowering India’s competitive edge and promoting global partnerships.”
CETA secures unprecedented duty-free access for 99 per cent of India’s exports to the UK, covering nearly the entire trade basket.
This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals.