India–UK Free Trade Pact Set to Weave Jobs, Exports, and Innovation into a USD 60 Billion Opportunity Among the top beneficiaries of the FTA is India's textiles and apparel sector. With the UK eliminating duties on garments and home textiles, Indian manufacturers are expected to gain a competitive edge over regional rivals such as Bangladesh, Vietnam, and China. Export growth is projected to rise by 25–30 per cent, with corresponding job creation in labour-intensive hubs like Gujarat, Tamil Nadu and West Bengal
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In a landmark diplomatic development, India and the United Kingdom have concluded a comprehensive Free Trade Agreement (FTA) that is set to propel bilateral trade to over USD 60 billion by 2030. The pact, which eliminates tariffs on 99 per cent of Indian exports including key segments such as textiles, leather, footwear and food items like frozen prawns—is widely expected to deepen economic cooperation, enhance sectoral competitiveness, and generate employment across India.
According to the PHD Chamber of Commerce and Industry (PHDCCI), the agreement also seeks to reduce Non-Tariff Barriers (NTBs), thus enabling a more seamless flow of goods and services.
Sectoral impact
Among the top beneficiaries of the FTA is India's textiles and apparel sector. With the UK eliminating duties on garments and home textiles, Indian manufacturers are expected to gain a competitive edge over regional rivals such as Bangladesh, Vietnam, and China. Export growth is projected to rise by 25–30 per cent, with corresponding job creation in labour-intensive hubs like Gujarat, Tamil Nadu and West Bengal.
"This agreement will bring a level playing field for Indian exporters and boost employment across textile clusters," noted Shri Hemant Jain, President of PHDCCI.
On the other hand, India's pharmaceutical sector stands to gain significantly from regulatory harmonisation and mutual recognition of standards. The agreement will unlock procurement opportunities through the UK's National Health Service (NHS), particularly for generic drugs and active pharmaceutical ingredients (APIs) manufactured in Indian states such as Telangana and Maharashtra.
"The FTA will support job creation not only in manufacturing but also in R&D, positioning India as a key supplier to one of the world's most advanced healthcare systems," Jain added.
Additionally, with the removal of UK import duties on Indian leather and footwear products, the sector is projected to generate employment for over four million workers. Small and medium enterprises (SMEs) based in Uttar Pradesh and Haryana are expected to benefit the most.
The liberalisation of visa norms and recognition of professional qualifications have opened new avenues for India's IT and services sector. Enhanced service exports and greater ease of access for consultants and skilled workers are set to strengthen India's presence in the UK digital economy.
Bengaluru, Hyderabad, and Pune are likely to see a rise in outbound services. "This FTA will allow Indian talent to flourish and innovate on a global stage," said Keshav Murugesh, Chairperson of CII UK India Business Forum.
Rural employment and export gains
Indian agricultural exports ranging from frozen prawns and rice to spices and tea are set to receive duty-free access under the agreement. This development is expected to benefit states like Kerala, Andhra Pradesh and Punjab, supporting rural employment across farming, food processing and logistics.
"The trade deal ensures better market access for agri-exports, helping India tap into the UK's consumption-driven economy," noted Dr Ajai Chowdhry, Co-founder of HCL and Chairman of the EPIC Foundation.
