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WORLD NEWS: Is the India-UK Free Trade Agreement a Game Changer for Indian Exports?

The India-UK Free Trade Agreement, signed in July, promises lower tariffs, simpler trade rules, and new export opportunities while strengthening bilateral ties.

Published By: Nisha Srivastava
Last Updated: September 18, 2025 15:28:37 IST

The recently signed India-UK Free Trade Agreement (FTA) is designed to lower tariffs, cut down on trade barriers, and simplify customs and digital processes. Mark Birrell, Trade Counsellor for South Asia at the British Deputy High Commission in Mumbai, highlighted these points during his address at the Confederation of Indian Industry (CII) Global Trade Scenario National Summit on Thursday.

“Making Trade Easier and Seamless”

Birrell explained that the central idea of the deal is to remove obstacles and modernise systems. “It is about making trade easier and as seamless as possible. The FTA is about improving customs processes and making digital trade easier,” he told industry leaders.

A Strong Signal of Bilateral Partnership

The agreement was signed in July in the presence of leaders from both India and the UK. Birrell described it as a clear sign of the deep and growing economic ties between the two nations. “We can already feel as we move through the ratification process, and move towards implementing the free trade agreement, look forward to more of that happening in the future,” he said.

Lower Tariffs and Fewer Barriers

According to Birrell, the deal is not just about tariffs, but also about strengthening the long-term relationship. “It lowers tariffs, it reduces non-tariff barriers. But also it’s about the wider positive signalling about the strong trading relationship between the UK and India,” he noted.

Benefits for Indian Businesses

The Ministry of Commerce and Industry earlier described the pact as a landmark trade deal. It gives zero-duty access on 99% of tariff lines, covering almost the entire trade value. This is expected to open major export opportunities in labour-intensive sectors such as textiles, leather, footwear, gems and jewellery, marine products, and toys. The government believes the agreement will not only boost exports but also create jobs, empower artisans, and strengthen women-led enterprises and MSMEs.

Beyond Tariffs: Wider Cooperation

Birrell emphasised that the agreement reflects a broader partnership between India and the UK. “It’s a really strong relationship. The agreement itself was a positive signal, and we hope more of that relationship can continue in the future,” he said.

No Comments on India-US Tariffs

When asked about India’s trade policies with the US, Birrell declined to comment but praised the India-UK deal instead. “I won’t comment on India-US tariffs, but I’m thrilled that we in the UK and India have had our free trade agreement that we’ve agreed, and we’ll have a positive effect on the trading relationship between the two countries,” he stated.

Focus on Sustainability and Global Standards

Birrell also highlighted the importance of sustainability, regulatory alignment, and professional mobility in making the agreement stronger. During the panel discussion, CII experts noted that Indian businesses will need to adapt to international standards to fully benefit from the FTA and diversify their supply chains.

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The Daily Guardian is India’s fastest growing News channel and enjoy highest viewership and highest time spent amongst educated urban Indians.

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