The landmark India-UK Free Trade Agreement has now come into effect, and Harjinder Kang, the United Kingdom’s former chief negotiator for the deal, has described it as being deliberately built to be future-proof.

In an exclusive interview, Kang recalled the long and complex negotiations, noting that India was a tough partner to bargain with, but both sides demonstrated strong political intent which ultimately made the agreement possible. He emphasised that without such intent, the process would have been far more difficult.

Kang pointed out that the negotiations continued despite a change of government in the UK. The process began under the Conservative Party and concluded under the Labour Party, yet both administrations supported the deal.

This continuity gave officials confidence that the agreement had bipartisan backing. On the Indian side, the negotiating team remained consistent throughout, which contributed to the eventual success. Kang stressed that the pact was designed not just for the short term but for decades to come, ensuring resilience against future challenges.

He explained that the agreement provides a stable framework for strengthening economic cooperation between the two countries. While it was not intended to solve global problems, it was crafted to help India and the UK conduct business more effectively on a bilateral basis. Kang acknowledged that turbulent times lie ahead, but the FTA offers both nations greater stability and the ability to build on their relationship in the future.

Earlier in the day, British High Commissioner to India Lindy Cameron hailed the agreement as a historic moment that would unlock new opportunities for businesses, workers and consumers in both countries.

She described it as the most ambitious free trade agreement either nation has ever implemented, covering 30 chapters on goods, services, procurement and other areas. Cameron highlighted that 99 per cent of Indian goods entering the UK and 90 per cent of tariff lines for UK exports to India would now benefit from duty-free or reduced-tariff access.

She noted that the deal is expected to increase bilateral trade by more than GBP 25 billion annually in the long run, while boosting the combined GDP of both countries by nearly GBP 5 billion. Key sectors set to benefit include infrastructure, clean energy, financial services, manufacturing, creative industries and consumer goods. The agreement reduces tariffs, expands market access and eases business mobility, making collaboration between the two economies more seamless.

Cameron explained that enthusiasm for the agreement was evident among British companies, ranging from large corporations to MSMEs. During a UK-wide roadshow across six cities, businesses expressed optimism about expanding into India as trade barriers fall and new export opportunities arise.

She cited examples such as a Manchester-based dye manufacturer and a copper products company, both expecting reduced tariffs to make their products more competitive in India.

She underlined that the deal combines Britain’s strengths in design, sustainability and innovation with India’s scale, ambition and rapid infrastructure development. Improved business mobility will allow engineers, consultants and professional services firms from both countries to collaborate more easily on major projects.

The agreement also opens government procurement markets, granting UK companies access to India’s central procurement market valued at GBP 38 billion annually, while Indian firms gain entry to UK procurement opportunities. This is expected to particularly benefit urban infrastructure projects, where British specialist equipment and technologies will become more competitive.

Cameron added that financial services firms, including banks, insurers and fintech companies, would enjoy greater certainty under the agreement. Collaboration in creative industries will be strengthened, with intellectual property rights protected for Indian animation studios and UK game developers. Clean energy is another major beneficiary, with 98 per cent of environmental and green goods liberalised, supporting India’s energy transition while boosting UK exports of turbines, generators and renewable energy components.

The India-UK Free Trade Agreement thus represents a new gold standard in trade deals, designed to endure for decades, and is expected to reshape economic ties between the two countries while offering resilience against global uncertainties.

ANI