UK India Business Council Welcomes the Signing of the UK-India Free Trade Agreement
By Trisha Nagpal
UK India Business Council Welcomes the Signing of the UK-India Free Trade Agreement
New Delhi/ London, May 06, 2025: The UK India Business Council (UKIBC) welcomes the signing of the historic Free Trade Agreement (FTA) between the United Kingdom and India. The landmark agreement represents a major step forward in strengthening the economic and strategic partnership between the UK and India.
British Business and Trade Secretary Jonathan Reynolds and Indian Commerce Minister Piyush Goyal held final talks in London last week after relaunching negotiations only two months ago.
The FTA promises to reduce barriers to trade and investment, promote sustainability and innovation, and encourage closer cooperation across industries including technology, manufacturing, services, education, and healthcare. With India being one of the fastest-growing major economies and the UK a global leader in innovation and services, this agreement is poised to deliver significant benefits to businesses of all sizes.
Currently, the total trade between the UK and India was £42.0 billion in the four quarters to the end of Q2 2024, an increase of 9.7% year-on-year. This level of trade has almost doubled from before the pandemic – in 2019, the year before the pandemic, UK-India trade was only £24.1 billion.
Richard Heald, OBE, Chair, UK India Business Council, “The signing of the UK-India FTA is a momentous occasion. It reflects the deep trust, shared values, and mutual ambition that define the UK-India relationship. This agreement will unlock new opportunities for businesses across both countries, drive economic growth, create jobs, and support innovation and collaboration across sectors.
We are delighted to have worked closely with both governments and with businesses throughout the negotiation process. Our members and clients are excited about the opportunities that will now open up. UKIBC remains committed to supporting businesses to navigate the new framework and to fully realise the benefits of this historic agreement.”
Kishore Jayaraman, UK India Business Council, India Chair:
“Once it comes into force the FTA will support further economic growth for the world’s 5th and 6th largest economies. It will catalyse collaboration into other areas too.
Importantly, it will underscore the fact that the UK and India are strategic partners. This is truly an exciting chapter of the UK-India partnership. As India charges ahead towards Viksit Bharat@2047, UKIBC and more broadly, British businesses recognise that a successful FTA is a critical milestone in a longer-term journey and are keen to support India’s ambitions.”
The UKIBC looks forward to continuing its role as a bridge between UK and Indian businesses, helping them to maximise the opportunities presented by this agreement, and contributing to the broader UK-India 2030 Roadmap.
We stand ready to support our members, clients and stakeholders in navigating the opportunities the FTA presents, and we will continue to work closely with both governments to ensure the agreement delivers tangible benefits for businesses of all sizes.
We understand that signing of the agreement is starting point and it will need a Parliamentary signoff to enter into force, allowing businesses to take advantage of the new trade rules and opportunities.
About UKIBC
UKIBC is a policy advocacy and strategic consulting not-for-profit, with a mission to grow the UK-India trade and investment. To do that, we provide strategic and practical support to businesses and universities to explore, enter, and expand in both markets.
We want to help more UK businesses to uncover opportunities and succeed in India.
Business looking at the India opportunity need to develop a strategy based on factual market insights, and then implement that strategy. The UK India Business Council has the knowledge, networks, and people to help do this.
UK-India collaboration creates prosperity and jobs in both countries, and UK and Indian business have ideas, technology, services and products which improve lives. We work closely with the UK and Indian governments, the devolved administrations, England’s city regions, and State governments across India. We believe a strong UK-India economic partnership is a force for positive change globally.
