India and the UK seal a historic FTA; FIEO hails it as a major step for exports, investments, and global trade integration.
In a momentous development, India and the United Kingdom have finalised a landmark Free Trade Agreement (FTA), marking a new chapter in international commerce. The Federation of Indian Export Organisations (FIEO) has lauded the deal as a transformational milestone for Indian exports, investment flows, and global economic integration.
“This is a game changer,” declared S. C. Ralhan, President, FIEO. “The India–UK FTA will unlock unprecedented opportunities for Indian businesses and accelerate our role in global trade.”
The agreement eliminates or significantly reduces tariffs across a broad spectrum of goods and services, granting preferential access to one of the world’s most consumption-driven markets. Key beneficiaries include:
- Textiles & Apparel – Tariff removal boosts competitiveness against Bangladesh & Vietnam
- Leather & Footwear – Easier access to premium UK retail markets
- Gems & Jewellery – Stronger push for handcrafted and diamond export
- Pharmaceuticals – Faster approval for generic drugs via streamlined regulations
- Agriculture & Processed Foods – Greater scope for tea, spices, rice, and ready-to-eat exports
In addition, the pact promises a strong boost to India’s IT and professional services, with improved mobility for professionals and reduced barriers for services exports.
The agreement is not limited to trade alone—it also includes provisions for investment facilitation, intellectual property rights, digital trade, and dispute resolution, thereby enhancing investor confidence and offering long-term policy predictability.
“This FTA aligns with India’s vision of becoming a resilient, trusted trade partner in a rapidly shifting global environment,” said Ralhan. “It strengthens India’s standing as a strategic player in the Indo-Pacific region and a preferred destination for UK investors.”
Calling upon MSMEs and exporters, the FIEO chief urged businesses to proactively tap into the new opportunities opened by the FTA and to scale up their global footprint.
FIEO reaffirmed its commitment to working closely with the Government of India and industry stakeholders to ensure the agreement’s effective rollout and maximise gains for Indian exporters.
Source: Press release
