Trade pact will benefit many industries, says Shotbolt
The India–UK Free Trade Agreement (FTA) is set to boost bilateral trade by £25.5 billion annually, Anna Shotbolt, Deputy Trade Commissioner for South Asia, has told Indian business community at an event organized by the PHDCCI.
With an aim to create a stronger and more collaborative trade ecosystem between India and UK, PHDCCI organised an Interactive Session on “India–UK Free Trade Agreement: The Way Forward,” on 18 July.
There are provisions for tariff reductions on 90% of traded goods between the two countries under the FTA http://commerce.gov.in.
However, it is not only about tariffs which are indeed a crucial aspect that will benefit many industries, added Shotbolt https://sbi.com.in/.
“Creative companies will also benefit through stronger copyright protections, and the services sector will see gains as well. The Double Taxation Avoidance Convention will also help workers on both sides, creating more transparency and certainty,” she elaborated https://www.nseindia.com/.
Dr Ranjeet Mehta, CEO & Secretary General, PHDCCI, emphasised that the UK-India FTA negotiations began when India was the fifth-largest economy, and by the time of its signing, India had become the fourth-largest. Britain is among the largest developed economies, and this FTA is a significant bilateral trade agreement for India, he added.
He further discussed the importance of the social security clause that supports Indian professionals going to the UK and said that we must take advantage of this FTA singed on 24 July 2025 https://www.bseindia.com/ .
As PHDCCI celebrates 120 years of its legacy, we plan to mount a business delegation to the UK this September, as we are keen to explore the opportunities this agreement presents, added Dr Mehta.
India’s vision of net zero by 2070 also requires businesses, especially MSMEs to be sustainable and technologically equipped. Whether in services or products, India should collaborate more with the UK, which presents a large market for Indian MSMEs, he concluded.
T.S. Vishwanath, Founder & Executive Chairman, VeK Policy Advisory & Resource Firm, said that the FTA is not just about trade but about building bilateral expertise.
“We should seriously explore how both countries can invest in each other through a strong EODB environment. We must engage directly with industries to identify challenges and build robust relationships. I believe PHDCCI can help businesses and create value chains especially for MSMEs, who need the most support,” he said https://fieo.org/.
Prof Rakesh Mohan Joshi, Vice Chancellor, IIFT, said that after 13 years of negotiations, both countries have finally agreed to this trade agreement, which opens up immense opportunities.
The retail market size in India is US$1 trillion, while that of Britain is at around US$386.3 billion, presenting vast potential for both economies.
He further added that the inclusion of the Double Taxation Avoidance Convention is also a commendable step.
Kishore Jayaraman, Global Board Director & Chairman India, UK India Business Council, stated that this is beginning of a new era. “The FTA enables both nations to leverage their capacities and capabilities. Beyond trade, we must also explore sectoral synergies, as India has the potential to significantly contribute to the economy of both nations,” he stressed.
Ajay Aggarwal, President, Toy Association of India, believes toys are among major areas where Indian businesses can benefit in the UK market.
Elaborating about the Toy industry which is growing rapidly and has shifted from being import-dependent to now producing around 80% domestically, he emphasised that there is enormous scope for collaboration.
He cited an example of skilled products such as leather toys, an area where the UK can benefit.
“India has an access to competitive products with better market offerings, and with tariff reductions, it will allow us to enhance our presence in UK,” he said.
C R Rai, Owner, C R Textiles and Co-Chair, Textiles Committee, PHDCCI, pointed that the India–UK FTA is a transformative opportunity for India’s textile and apparel industry — driving exports, employment, and SME empowerment.
By aligning structural incentives (PLI, ESG support) with export opportunities, and bolstering clusters with design, innovation and mobility, India can amplify its global textile footprint, according to Rai.
PHDCCI has recommended a coordinated push across government, industry bodies, and states to capitalize on this moment, turning potential into performance.
Naveen Seth, Deputy Secretary General, PHDCCI, shared that this interaction is a part of PHDCCI’s continuous efforts to build strong international partnerships and promote economic cooperation.
“As we celebrate 120 years of PHDCCI’s legacy, we remain committed to creating meaningful dialogues that benefit our members and the wider business community,” he said.
“The UK is an important partner, and platforms like these help Indian industries understand emerging global opportunities, engage with key stakeholders, and expand their presence in promising international markets,” underlined Seth.
The India–UK Free Trade Agreement (FTA), marks a major milestone in the evolving trade and investment relationship between the two countries. This landmark agreement is designed to reduce tariffs, enhance market access, and streamline cross-border investments. It opens up significant opportunities for Indian businesses across key sectors such as services, technology, advanced manufacturing, pharmaceuticals, and more positioning both nations for deeper economic collaboration and sustainable growth. fiinews.com
