Industry upbeat as India-U.K. ink FTA
Amid the trade war and global uncertainties, the India-U.K. Free Trade agreement, signed on Tuesday, would create large opportunities for Indian companies, significantly boost bilateral trade, attract strategic investments, and further integrate Indian businesses into the global value chain, said trade organisations and industry leaders.
The sectors which are set to benefit include textiles and apparel, leather and footwear, gems and jewellery, pharmaceuticals, agriculture and processed foods to name a few.
'The timely agreement will help advance a comprehensive strategic partnership between India and the U.K., steering bilateral trade towards the ambitious target of USD 100 billion by 2030,' said CII President Sanjiv Puri.
'This agreement comes at a pivotal time when India is positioning itself as a resilient and reliable trade partner in a rapidly evolving global landscape,' said the Federation of Indian Export Organisations (FIEO) president S.C. Ralhan.
Sudarshan Venu, MD, TVS Motor Company said, 'It creates large opportunities for Indian companies like ours to expand further and access new markets. Our British brand Norton will launch later this year and this agreement will help us scale faster and leverage common supply chains.' Harsha Vardhan Agarwal, President, FICCI said, 'The India-U.K. Free Trade Agreement is not just a trade pact—it's a bridge to shared prosperity. It brings a new momentum to sectors like FMCG, healthcare, and innovation-driven enterprises.
Mayank Jain, Partner, Khaitan & Co., said, 'This landmark agreement marks a significant step in reducing trade barriers between the world's fifth and sixth largest economies.'
Boost for textiles
The India-U.K. Free Trade Agreement will strengthen the labour-intensive Indian textile and apparel sector, positioning India as a major textile hub, according to garment exporters.
K.M. Subramanian, president of the Tiruppur Exporters Association, said almost 9% of Indian knitwear exports are to the U.K. and this is likely to touch 20% after the FTA.
According to A. Sakthivel, vice chairman of the Apparel Export Promotion Council (AEPC), by unlocking new export opportunities, reducing trade barriers, and enabling greater access to the U.K. market, this agreement promises to empower exporters across the textile value chain.
AEPC chairman Sudhir Sekhri said the FTA will open up huge opportunities for garment exporters.
(With inputs from TCA Sharad Raghavan in New Delhi)
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