India-UK FTA: Industry leaders hail economic boost and job creation

The much-awaited landmark India-UK Free Trade Agreement was signed on Thursday, in the presence of Prime Ministers Narendra Modi and Keir Starmer, providing greater access to goods and services between the two countries.

On May 6, Prime Minister Modi and his UK counterpart, Keir Starmer, announced the successful conclusion of a mutually beneficial India-UK Free Trade Agreement (FTA).

The idea behind the trade deal is to eliminate or reduce tariffs on imports and exports between the two nations. This should make Indian products competitive in the UK and vice versa.

Both nations desire to increase their trade to USD 120 billion by 2030.

Vedanta Chairman Anil Agarwal lauded the agreement, calling it a "great achievement between Britain and India" and a "win-win for both countries."

He said the FTA is expected to increase trade by at least USD 20 billion and boost job creation and entrepreneurship.

"The FTA will be a win-win for both countries. It will boost economic activity and create many more jobs, and opportunities for entrepreneurship, in both countries," Agarwal added.

Abhimanyu Munjal, MD & CEO of Hero FinCorp, called the FTA "a launchpad for India's entrepreneurs to tap global demand" and a proud step toward Atmanirbhar Bharat.

"The India-UK FTA is more than a trade pact--it's a launchpad for India's entrepreneurs to tap global demand, scale faster, and lead with confidence. A proud moment in our journey to an Atmanirbhar Bharat," Munjal added.

Grant Thornton Bharat's Pallavi Bakhru emphasised the positive impact on businesses in cities like Ludhiana, Pune, Manchester, and the Midlands, citing "reduced tariffs, smoother talent mobility, and expanded market access."

She also noted the "strategic win" of exempting Indian professionals from UK social security contributions for temporary assignments.

Despite concerns over sector-specific impacts, including potential job losses in Indian manufacturing, Bakhru said it's "a catalyst for Indian businesses to strengthen their competitiveness."

Futurense founder Raghav Gupta pointed to India's massive AI talent pool, saying, "India has emerged as one of the world's largest AI talent hubs. If Indian AI talent can contribute to UK innovation, it's a huge opportunity."

With India committing up to Rs 5,000 crore to its rare earth ecosystem, MiniMines CEO Anupam Kumar said the FTA comes at a "crucial moment" and opens access to the UK's circular economy and recycling sector.

Pooja Ramchandani of Shardul Amarchand Mangaldas & Co. highlighted the India-UK Social Security Agreement as a "significant step towards ease of doing business."

In the alco-bev sector, Radico Khaitan Managin Director Abhishek Khaitan called the agreement "pivotal," citing cost advantages and enhanced access to premium international spirits, while also enabling "Indian companies to accelerate premiumisation."

"More broadly, this agreement is a win-win; empowering Indian enterprises to elevate their global competitiveness while showcasing India's excellence and innovation on the world stage," Khaitan added.

On the digital front, HFCL MD Mahendra Nahata noted that as both nations pursue AI transformation, the deal supports building the "next-generation digital infrastructure" critical to powering their AI-driven economies. (ANI)