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India's exports to the UK rose by 12.6 per cent to USD 14.5 billion, while imports grew by 2.3 per cent to USD 8.6 billion in 2024-25.

India-UK pact boosts MSMEs, exports, jobs

India's exports to the UK rose by 12.6 per cent to USD 14.5 billion, while imports grew by 2.3 per cent to USD 8.6 billion in 2024-25.

The India-UK trade deal will provide duty-free access to several domestic sectors such as leather, electrical machinery and chemicals in the British market, thus unlocking nearly USD 23 billion in opportunities, Commerce and Industry Minister Piyush Goyal said.
The pact, officially called Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer.
"Duty-free access for about 99 per cent of Indian exports unlocks nearly USD 23 billion in opportunities for labour-intensive sectors, marking a new era for inclusive and gender-equitable growth," Goyal said in a post on X.
Artisans, weavers, and daily-wage labourers employed in several MSMEs across textiles, leather, footwear, gems and jewellery, toys, and marine products will step into a new phase of prosperity, he said.
This agreement, Goyal said, will ensure duty-free exports of nearly 95 per cent of agricultural products, while fisherfolk gain from zero duty on 99 per cent of marine exports, boosting their incomes.
"The deal will also have a transformative impact on manufacturing-intensive sectors like engineering goods, electronics, pharma, chemicals, food processing, and plastics. This agreement will also provide Indian consumers high quality goods at competitive prices," he added.
Goyal also said that India's talent in IT, services, and education will gain from easier access to the UK's high-value markets.
"The three-year exemption from social security contributions in the UK as part of the Double Contribution Convention is a significant breakthrough for Indian workers and their employers," he said adding chefs, yoga instructors, musicians and business visitors will also be benefitted from the pact.
India's exports to the UK rose by 12.6 per cent to USD 14.5 billion, while imports grew by 2.3 per cent to USD 8.6 billion in 2024-25.
The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23.

The UK-India FTA slashes tariffs, boosts trade by GBP 25.5 billion, and supports job creation, marking new heights in UK economic partnerships.

UK products benefit from Indian tariff cuts

The UK-India Free Trade Agreement promises transformative economic growth with tariff reductions spurring bilateral trade and enhancing job creation in the UK.

The UK-India Free Trade Agreement aims to boost UK businesses by reducing tariffs and driving job creation and economic growth, with a projected GDP rise of GBP 4.8 billion.

As the "standout growth engine" in Asia, India is projected to be the third largest economy in the world by 2028, and the recent Free Trade Agreement (FTA) offer British businesses a "major advantage" over their international competitors, the UK's new trade strategy and outlook have said.
The 'UK's Trade Strategy' and an accompanying 'Global Trade Outlook 2025' released by the Department for Business and Trade (DBT) on Wednesday spotlights the trade deal with India, concluded early last month, as the centrepiece of the Labour government's approach to utilising FTAs as an important tool to meet its economic growth agenda.
"Asia is expected to benefit from standout growth from India and a new generation of fast-growing emerging markets," reads the outlook.
"Asia's centre of growth is expected to shift from China to India and other emerging markets, while Africa's demographic boom could drive high growth if job creation can keep pace with population growth," it notes.
About the FTA, the trade strategy points out that the "comprehensive agreement" with India is reflective of the "transformative" impact that Free Trade Agreements can make.
It reads: "For example, the UK-India FTA is a landmark trade deal that will drive growth and boost trade with one of the fastest-growing economies in the world. As soon as the deal comes into force, UK products will benefit from a saving of up to an estimated GBP 400 million a year, from India cutting its tariffs on existing trade alone, which could increase to around GBP 900 million a year after staging over 10 years.
"And that's before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors." The trade strategy, which complements an Industrial Strategy released earlier this week, is aimed at setting a clear direction for the government's growth and job creation goals.
"What works for business, works for Britain. It means more jobs, more opportunities, and more money in people's pockets. That's why I've backed British industry through global headwinds &ndash; securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country," said British Prime Minister Keir Starmer.
"Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy," added Business and Trade Secretary Jonathan Reynolds.
The strategy reiterates the "huge economic win" from the India FTA, which "slashes Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90 per cent of tariff lines for UK exports to unleash opportunities for businesses across our regions and nations".
"Furthermore, it delivers certainty for service suppliers, including non-discrimination commitments to support new opportunities. It delivers on our Plan for Change and is expected to increase bilateral trade by GBP 25.5 billion, increase UK GDP by GBP 4.8 billion, and boost wages by GBP 2.2 billion every year in the long run," the strategy adds.
The India-UK deal is expected to be officially signed off at the end of next month following the obligatory parliamentary clearance in Britain.
"We in India have a much faster process, comparatively, so we'll be ready as soon as the legal scrubbing is done and the document is sorted out," Commerce and Industry Minister Piyush Goyal had said during his UK visit last week to discuss the next steps in the FTA.

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