Big Boost for India in the UK Market... Jackpot for Indian Companies

The India-UK Free Trade Agreement (FTA), signed on July 24, 2025, officially came into effect yesterday under the Comprehensive Economic and Trade Agreement (CETA). The landmark agreement is expected to significantly boost bilateral trade and provide Indian exporters with greater access to the UK market. One of the biggest benefits is for the steel sector, as the UK has agreed to import more than 1.1 million tonnes of Indian steel annually under zero duty quotas.

The agreement is also expected to attract higher British investments into India, strengthening the country's manufacturing sector and creating new employment opportunities. Labour intensive industries such as textiles, footwear, leather products, and jewellery manufacturing are expected to benefit the most. Industry leaders believe bilateral trade, currently valued at $60 billion, could grow to $100 billion in the coming years.

Under the FTA, 99% of India's exports to the UK and 90% of UK exports to India will enjoy zero or reduced customs duties, improving the competitiveness of Indian products against countries like China, Pakistan, Bangladesh, and Vietnam. On the very first day of implementation, India exported goods worth $140 million (₹1,344 crore) to the UK without customs duty. Industry bodies have described the agreement as historic, saying it will strengthen trade, investment, technology collaboration, and innovation between the two countries.