The signing of the India-UK Free Trade Agreement (FTA) marks a defining moment in the evolving strategic and economic partnership between New Delhi and London. Finalised after multiple rounds of high-level negotiations, the deal is not just a win for diplomacy-it is a catalyst for deeper business, innovation, and investment ties between two dynamic economies.
But to view it merely as a trade deal would be to miss the forest for the trees. The FTA signals the emergence of a new, intrinsic relationship-one rooted not in post-colonial baggage or transactional goals, but in mutual respect, shared values, and strategic equality. It opens a new vista for India to engage with the UK as an equal partner in shaping the global economic and political order.
From India’s standpoint, the agreement creates a powerful economic corridor with the UK, one of the world’s top financial hubs and a leader in innovation and services. Indian businesses now have a clearer pathway to tap into the UK’s deep capital markets, cutting-edge research networks, and vibrant professional services sector.
Sunil Bharti Mittal, Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum, called the agreement “modern and forward-looking,” saying it would “stimulate innovation, ease market access, and foster investment” across sectors. His optimism reflects the mood of Indian industry, which sees the FTA not merely as a trade pact, but a launchpad for global competitiveness.
Prime Minister Narendra Modi described the FTA as “a blueprint for shared prosperity,” noting that it will enhance access for Indian exports such as textiles, footwear, gems and jewellery, seafood, and engineering goods.
The Confederation of Indian Industry (CII) hailed the deal as a “transformational milestone,” with Indian firms-especially in food processing, agricultural exports, and pharmaceuticals-set to benefit from reduced tariffs, improved regulatory clarity, and smoother customs procedures.
A standout feature of the agreement is the social security clause, allowing Indian professionals working in the UK to continue contributing to India’s pension system for up to three years-a long-pending demand from Indian trade bodies. This is expected to encourage skilled mobility and boost India’s services exports.
Currently, over 970 Indian companies operate in the UK, employing more than 1.1 million people and contributing £1.17 billion annually in taxes. With the FTA in place, these businesses can expect a more predictable policy environment and reduced transaction costs, boosting investor confidence on both sides.
In services and finance, the deal opens doors for collaboration between London and GIFT City in Gujarat-India’s first international financial services centre.
Prime Minister Modi highlighted this synergy, noting that both countries can work together to deepen capital market integration and promote financial innovation.
The FTA is also expected to support India’s green and digital transitions. With London as a hub for climate finance and the UK home to world-leading cleantech firms, Indian renewable energy and electric mobility ventures could attract more investment and strategic partnerships.
Former Indian High Commissioner to the UK, Gaitri Issar Kumar, who was associated with the early phase of negotiations, said Indian interests were carefully safeguarded. “Consultations with industry ensured practical solutions were found and critical sectors protected,” she noted, adding that the deal remained a top-level priority for both governments since 2020.
The broader India-UK Vision 2035 document, adopted alongside the FTA, sets a roadmap for collaboration in defence, education, climate action, innovation, and digital governance. Among other initiatives, the UK’s Southampton University has already opened a campus in Gurugram under India’s New Education Policy (NEP)-the first foreign university to do so.
The agreement is expected to increase bilateral trade by approximately $34 billion annually and help both countries reach the $120 billion trade target by 2030. But as former Indian High Commissioner Ruchi Ghanshyam rightly cautions, “Implementation will really be the key.”
She added, “Both sides have used terms like ‘historic’, ‘ambitious’ and ‘a landmark’ to describe this agreement. For the FTA to reach the desired goal, businesses on both sides will need to examine the possibilities emerging out of the agreement and follow up. It is hoped that the FTA would benefit both countries as they work to achieve the desired goal.” What makes this moment historic is not just the market access or investment flows it promises, but the message it sends: that India today enters the global stage as a peer, not a junior partner. The FTA paves the way for a future built on equality, collaboration, and mutual ambition-qualities that will define the next chapter of India’s global journey.
Sanjay Jha is South Asia Head of News Operations for British ITV News
