Union Commerce Minister Piyush Goyal has described the recently signed Free Trade Agreement (FTA) between India and the United Kingdom as “Historic, Fantastic,” emphasising that the agreement not only unlocks new opportunities for India but also safeguards crucial national interests.

The deal marks a defining moment in economic cooperation between the two countries, aiming to double their bilateral trade, currently valued at nearly $56 billion, by 2030.

Safeguarding Sensitive Sectors

A noteworthy aspect of the FTA is its deliberate exclusion of sensitive sectors such as dairy, rice, and sugar. These exclusions were made to protect Indian farmers and Micro, Small, and Medium Enterprises (MSMEs), ensuring that vital segments of India’s agricultural and small business economies are not adversely impacted. This careful approach has been hailed as a significant win for safeguarding domestic interests amidst deeper global integration.

Expansion of Opportunities

The agreement is poised to provide major openings for Indian businesses in labour-intensive sectors. Textiles, footwear, leather, toys, furniture, and pharmaceuticals will see enhanced access to the UK market. Lowered duties and broader entry points are expected to create substantial opportunities for Indian workers, entrepreneurs, and especially women, helping to strengthen India’s employment and manufacturing landscape.

Protections And Benefits For Indian Workers

The FTA introduces provisions ensuring that Indians working temporarily in the UK can now deposit their earnings into their Provident Fund (PF) accounts back in India. Previously, Indian short-term workers in the UK faced approximately 25% losses as they did not receive benefits or pensions for social security payments. With this agreement, their contributions will now be secured as savings, eliminating earlier financial leakages.

Furthermore, the Double Contribution Convention exempts Indian professionals and their employers from social security payments in the UK for up to three years, reducing costs and increasing the international competitiveness of Indian talent.

Market Access And Trade Facilitation

One of the landmark features of the CETA is securing duty-free access for 99% of India’s exports to the UK. This coverage represents nearly the entire trade basket between the countries and is expected to especially benefit sectors such as:

Textiles and Garments
Marine Products
Leather and Leather Goods
Footwear
Sports Goods and Toys
Gems And Jewellery
Auto Components
Engineering Goods
Organic Chemicals

Boost To The Services Sector

India’s dynamic services sector will see broad benefits. The agreement includes increased market access for IT and IT-enabled services, financial and legal services, professional and educational services, and digital trade. Greater ease of movement, including simplified visa procedures and liberalized entry categories, will aid professionals such as architects, engineers, chefs, yoga instructors, and musicians working in the UK.

Inclusive, Sustainable, And Innovation-Friendly

The CETA is designed with inclusive growth in mind. Women and youth entrepreneurs, farmers, fishermen, start-ups, and MSMEs are given new avenues into global value chains. The agreement incorporates provisions to encourage innovation, promote sustainable practices, and reduce non-tariff barriers, ensuring that economic benefits are widely distributed across different socio-economic groups.

Road To Implementation

Cabinet approval has already been completed in India, and the UK will next move the agreement through its Parliament. Both governments expect swift ratification due to strong bipartisan support, providing certainty to industries and businesses to begin supply chain planning, approvals, and preparations for the next phase in bilateral trade.

Conclusion

The India-UK FTA represents a momentous step forward in economic diplomacy. With nearly all sectors—sensitive and strategic—accounted for, and with major benefits lined up for Indian businesses, workers, and the broader public, the agreement is widely anticipated to boost trade, create jobs, and forge a deeper, more resilient relationship between the two economies in the years ahead.

Based On ANI Report