A Landmark Trade Pact and Prime Minister Modi’s Vision
In a momentous development for India’s international trade agenda, Prime Minister Narendra Modi concluded a historic visit to the United Kingdom with the signing of the much-anticipated India–UK Free Trade Agreement (FTA). Hailing it as a “landmark occasion”, PM Modi highlighted the pact as a catalyst for deeper commercial and strategic ties between the two democracies.
Describing the FTA as a modern, inclusive, and forward-looking partnership, the Prime Minister underscored its long-term impact on trade, investment, innovation, and employment. A high-level delegation from the Confederation of Indian Industry (CII) accompanied him, marking strong alignment between India’s diplomatic priorities and its industrial ambitions.
CII Delegation: Industry-Led Diplomacy in Action
Organised by CII, the Indian business delegation featured 16 prominent industry leaders, led by Mr. Sunil Bharti Mittal, Founder & Chairman of Bharti Enterprises and Co-Chair of the India–UK CEO Forum. Their presence reflected Indian industry’s proactive role in shaping global partnerships.
“Indian industry across all sectors welcomes the India–UK FTA with great optimism. This agreement lays the foundation for a future-ready alliance that will drive innovation, ease market access, and unlock investment across key sectors,” said Mr. Mittal.
During the visit, the delegation held productive engagements with senior UK policymakers and business leaders, focusing on strategic sectors such as sustainability, advanced technology, pharmaceuticals, digital transformation, and mobility.
Key Benefits and Economic Opportunities
The India–UK FTA is poised to unlock significant commercial opportunities. Once implemented, it will:
· Reduce tariffs and trade barriers
· Enhance investor confidence
· Facilitate joint ventures and technology partnerships
Labour-intensive sectors such as textiles, leather, gems & jewellery, and marine exports are expected to see immediate gains. The agreement also emphasizes clean energy, life sciences, and advanced manufacturing as priority growth areas.
The deal includes a reciprocal Social Security Agreement, allowing Indian professionals to retain home-country benefits while working in the UK for up to three years—aligning with a long-standing CII recommendation.
Earlier in 2024, both nations launched the Technology Security Initiative (TSI), aimed at bolstering cooperation on critical and emerging technologies. The FTA further cements this high-tech alliance.
India–UK Trade Snapshot and Future Vision
With a target to double bilateral trade to $120 billion by 2030, the FTA builds upon a strong foundation. Over 970 Indian companies currently operate in the UK, contributing £1.17 billion in taxes and employing 1.1 million people, reinforcing their importance to the British economy.
The agreement is designed to promote regulatory cooperation, support innovation ecosystems, and provide a stable policy environment for long-term investments.
CII’s Role and Industry Perspective
CII, India’s apex industry body, has played a vital role in steering this milestone agreement. Its sustained advocacy for a comprehensive, growth-oriented FTA has shaped many of its key provisions.
“CII has been a consistent voice calling for a transformative India–UK Free Trade Agreement. This FTA marks a watershed in bilateral ties and opens new frontiers in business collaboration, job creation, and sustainable growth,” said Mr. Chandrajit Banerjee, Director General, CII.
Building the Next Chapter of India–UK Cooperation
The India–UK FTA, warmly welcomed by CII and Indian industry, represents a bold step forward in bilateral economic relations. It reflects shared values and common goals: growth, resilience, and innovation. As the agreement moves into the implementation phase, CII will continue to work closely with stakeholders on both sides to ensure this milestone delivers its full promise—paving the way for a new era of India–UK cooperation.
(With inputs from CII)
