‘India-UK FTA Will Open A New Era’: UK Industry Leaders Welcome Trade Deal | Economy News

Signed in London following a meeting between PM Modi and his British counterpart Keir Starmer, the FTA provides a major fillip to exporters and importers alike. For India, the agreement ensures duty-free access for 99% of its exports to the UK, potentially unlocking $23 billion in trade opportunities across labour-intensive sectors like textiles, leather, and engineering goods.

On the UK side, the government projects an annual wage boost of £2.2 billion (approx. $2.85 billion), with British consumers likely to benefit from lower prices and greater variety in imported clothes, footwear, food products, and more.

UK Industry Leaders React

Rolls-Royce CEO Tufan Erginbilgic welcomed the agreement, especially its implications for the aerospace sector. “India is an important market for our business, with over 90 years of partnership with Indian industry and the Indian Government,” he said. “We welcome the provisions in this Free Trade Agreement, including those that bring closer alignment with international standards for trade in civil aerospace. These agreements will benefit Rolls-Royce and our customers, paving the way for future aerospace growth in India.”

Also Read: ‘India-UK FTA Marks Defining Moment, Reflects Shared Commitment To Economic Resilience’: India Inc

Rolls-Royce, alongside Airbus, is preparing to deliver aircraft worth £5 billion, many of which will be powered by Rolls-Royce engines, to Indian airlines.

Nik Jhangiani, Interim CEO of Diageo, which owns iconic brands like Johnnie Walker, also hailed the deal. “The agreement marks a great moment for both Scotch and Scotland,” he said. “We’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”

The FTA will drastically reduce India’s steep whisky import duties — from 150% to 75% immediately, with a further reduction to 40% over the next 10 years — making premium UK spirits more affordable for Indian consumers.

Jean-Etienne Gourgues, CEO of Chivas Brothers, called the deal “a sign of hope in challenging times for the spirits industry”. He added, “India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.”

He emphasised that the agreement would “support long-term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade”.

William Bain, Head of Trade Policy at the British Chambers of Commerce, called the agreement transformative. “The FTA will open a new era for our businesses and boost investment between two of the world’s largest economies,” he said.

Highlighting its potential, Bain noted, “Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that. This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services.”

With the agreement in place, British and Indian companies are optimistic about the growth of bilateral commerce in the coming decade, marking a pivotal moment in post-Brexit UK trade strategy and India’s growing role in global trade.