India-UK Free Trade Agreement Poised to Double Bilateral Trade by 2030

In a landmark moment for India’s global trade ambitions, the recently finalised India–UK Free Trade Agreement (FTA) is expected to nearly double the current bilateral trade value of $56 billion by 2030. The pact promises significant economic gains across sectors, positioning India as a stronger player in global markets.

Key Provisions:

• Zero-duty access for 99% of Indian exports to the UK.
• UK tariffs of up to 16% to be scrapped, boosting India’s market share by over 5% within the next two years.
• Indian professionals posted in the UK will be exempt from social security payments for up to three years.

Sectoral Gains:

Leather & Footwear:
The FTA is set to unlock more than $900 million in additional exports for India’s leather and footwear industries, delivering fresh momentum to a traditionally labour-intensive sector.

Agriculture:
Over 95% of Indian agri tariff lines will now enjoy duty-free access to the UK. This move could trigger a 20% rise in agri exports over the next three years. However, sensitive segments such as dairy and edible oils remain excluded to safeguard Indian farmers.

Marine Exports:
Thousands of women employed in seafood processing are likely to benefit from improved global access. The agreement strengthens India’s positioning as a key supplier in the UK’s marine import ecosystem.

Electronics:
Indian electronics, including smartphones, optical Fiber cables, and inverters, will now enter the UK at zero duty—bolstering India’s presence in high-tech manufacturing exports.

Pharmaceuticals:
The removal of tariffs on generic drugs and medical devices (like ECG and X-ray machines) will enhance India’s global competitiveness in healthcare exports, reducing export costs for med-tech companies.

Chemicals:
India’s chemical exports are projected to grow by 30–40%, potentially reaching $750 million by FY 2025–26. The move enhances India’s integration into the UK’s chemical supply chain.

Jewellery:
With India already exporting $941 million in gems and jewellery to the UK—$400 million from jewellery alone—exports are expected to double within 2–3 years under the new agreement.

Sharing his thoughts on the occasion of this historic deal being inked, R. Dinesh, Chairman, TVS Supply Chain Solutions, had this to say. “I extend my heartfelt congratulations to the Hon’ble Prime Minister of India on the signing of the India–UK Free Trade Agreement. This landmark deal paves the way for a new era of economic cooperation between two vibrant economies. As a company with a strong presence in both India and the UK, we at TVS Supply Chain Solutions see this FTA as a strategic enabler. It will help streamline trade flows, reduce operational friction, and accelerate our ability to deliver cost-effective, agile solutions to global customers. With our strong presence in the UK and India , the agreement further strengthens our position in a critical market while opening new doors for cross-border collaboration, investment, and innovation.”