External Affairs Minister S. Jaishankar has hailed the recent conclusion of the India-UK Free Trade Agreement (FTA) and the Double Contribution Convention as a transformative milestone for both nations, emphasising its potential to significantly boost two-way trade, investment, and the resilience of supply and value chains.

During his meeting with UK Foreign Secretary David Lammy in New Delhi, Jaishankar underscored that the FTA will not only enhance economic ties but also deepen strategic cooperation across sectors.

The FTA, finalised in May 2025 after three years of negotiations, is projected to increase bilateral trade by nearly 15% annually, with India's exports and imports to and from the UK expected to reach approximately GBP 45 billion and GBP 30 billion, respectively, by 2030.

The agreement eliminates tariffs on 99% of Indian exports to the UK and 90% of UK goods imported to India, opening up significant opportunities for Indian sectors such as textiles, engineering, gems and jewellery, and auto parts, while also granting UK exporters improved access to India's vast consumer market for products like whisky, luxury cars, and medical devices.

Jaishankar highlighted that the FTA will create a level playing field for Indian exporters, especially in the textiles sector, where India is expected to double its market share in the UK’s ready-made garments imports, translating into an incremental annual export opportunity of around $1.1–1.2 billion in the near to medium term. Indian manufacturers in electricals and engineering are also set to gain a competitive edge, with the removal of tariffs expected to drive foreign investment and encourage joint ventures in these sectors.

Beyond trade, the agreement is anticipated to foster investment, joint ventures, and collaboration in services, further deepening economic ties and supporting innovation-driven enterprises. Industry leaders in India have welcomed the FTA, noting its potential to diversify global supply chains, bolster technology collaboration, and steer bilateral trade toward the ambitious target of $100–120 billion by 2030.

Jaishankar also reiterated India’s policy of zero-tolerance against terrorism, appreciating the UK’s solidarity in condemning recent terrorist attacks, and called for continued cooperation in security and infrastructure finance. He noted that people-to-people ties, educational collaboration, and the establishment of UK university campuses in India are further strengthening the comprehensive strategic partnership.

The India-UK FTA marks a pivotal shift in bilateral relations, promising mutual gains through increased trade, investment, and supply chain resilience, and setting the stage for a stronger, more integrated economic partnership in the years ahead.

Based On ANI Report