Experts call deal ‘most substantive’, project £28 bn trade boost, 1 mn jobs

SIAM President Shailesh Chandra says this landmark development marks a step forward in strengthening India’s global economic engagement, particularly with developed economies. “As two major economies enter a new phase of partnership, SIAM appreciates the government’s extensive stakeholder consultations throughout the negotiation process. Concluding this transformative agreement amid global trade uncertainties reflects India’s growing leadership in shaping modern trade and investment frameworks.”

He said the commitments made by the government concerning automotive sector tariffs strike a thoughtful balance, addressing consumer interests while supporting the broader goals of Indian industry. “We view this agreement as part of a wider strategic engagement and believe it opens new avenues for collaboration and opportunity with a key global partner.”

Himanshu Tewari, Partner, Trade and Customs, KPMG in India, says among the series of trade agreements signed by India in the past five years—with Australia, UAE, EFTA countries, etc.—the India-UK Comprehensive Economic Agreement will be the “most substantive” and impactful in creating opportunities for Indian exporters and the Indian economy at large.

Sector gains are sharp: steep tariff reductions on UK auto and EV exports, fast-track approvals in pharma and biotech, and 20% growth in financial services exports projected over five years, say experts. The digital and tech corridor, already over £20 billion strong, could also deepen with clearer rules on data, IP, and talent mobility.

Under the renewed FTA 2035 vision, the agreement extends the corridor’s strategic runway by five critical years, giving businesses and investors a longer horizon to plan, partner, and grow, says Navin Agrawal, Partner and Head – India UK Corridor, KPMG in India. “With 26 chapters finalised, it is expected to unlock £28 billion in additional trade, drive a £3.3 billion uplift to UK GDP, and support up to 1 million jobs across both economies.”