India-UK FTA Likely to Boost Trade by $25.5 Billion
The proposed Free Trade Agreement (FTA) between India and the United Kingdom could increase annual bilateral trade by as much as $25.5 billion, according to a British High Commission official. The statement comes amid ongoing negotiations between the two nations, which have completed 14 rounds of talks since January 2022.
Sectors Set to Benefit
If finalized, the FTA is expected to unlock new opportunities across a range of sectors. The official pointed out that areas such as automobiles, food and beverage, legal services, and digital trade would benefit from tariff reductions and eased regulatory frameworks. The deal is also aimed at encouraging Indian businesses to expand operations in the UK by streamlining market access and reducing trade barriers.
FTA Tied to Strategic Partnership
The India-UK FTA is being seen not just as a trade facilitation mechanism but as a symbol of deeper strategic ties. The official described the trade deal as a “natural progression” in a maturing relationship that already includes cooperation on defence, technology, and clean energy.
Negotiations, however, have faced hurdles in areas like whisky tariffs, labour mobility, and investment protection. But recent progress on key issues has revived optimism. India is reportedly pushing for increased access for its skilled professionals in the UK, while Britain seeks significant tariff cuts on automobiles and alcoholic beverages.
Talks Could Conclude This Year
With the 15th round of discussions currently underway, both sides are hopeful about closing the deal before the end of 2025. If successful, this would mark India’s most comprehensive trade pact with a European country and Britain’s biggest trade win post-Brexit.
