FIEO Welcomes Entry into Force of India–UK Free Trade Agreement

New Delhi:

Port Wings News Network:

The Federation of Indian Export Organisations (FIEO) has welcomed the coming into force of the India–United Kingdom Free Trade Agreement (India–UK FTA), describing it as a transformational milestone that will significantly deepen bilateral trade, enhance India’s export competitiveness, and create new opportunities for exporters across sectors.

Welcoming the development, S C Ralhan, President, FIEO, said that the coming into force of the India–UK Free Trade Agreement marks a historic milestone in India’s export journey. It opens a new chapter in our economic partnership with one of India’s most important trading partners and provides Indian exporters with preferential market access, greater certainty, and enhanced competitiveness in the UK market. This agreement will particularly benefit our MSMEs, labour-intensive industries, farmers, artisans, craftsmen, women entrepreneurs, and the services sector, creating new avenues for sustainable export growth and employment generation.

Ralhan stated that the FTA is expected to provide a significant boost to India’s merchandise and services exports by reducing tariff barriers, improving market access, simplifying trade procedures, and encouraging greater investments and technology partnerships between the two countries. He observed that labour-intensive sectors stand to gain substantially from the agreement, particularly textiles and apparel, garments, leather and footwear, carpets, handicrafts, gems and jewellery, furniture, engineering goods, sports goods, marine products, processed foods, tea, coffee, spices, agricultural products, pharmaceuticals, chemicals, and auto components.

“The India–UK FTA is expected to enhance the global competitiveness of Indian products by enabling exporters to access the UK market on more favourable terms. It will strengthen the position of India’s labour-intensive sectors, many of which are dominated by MSMEs, thereby supporting employment, rural livelihoods, and inclusive economic development,” Ralhan added.

Highlighting the opportunities for India’s agricultural community, he said the agreement would create improved export prospects for rice, tea, coffee, spices, fruits, vegetables, processed foods, marine products, and other value-added agricultural products, helping farmers integrate more effectively into global value chains and realise better value for their produce.

Ralhan further noted that India’s traditional sectors—including handlooms, handicrafts, carpets, artisanal products, and handmade goods—would benefit from enhanced market access among UK consumers who increasingly value sustainable, ethically produced, and premium-quality products. Emphasising the importance of the services sector, he said that the agreement also opens exciting opportunities for India’s globally competitive services sector, including information technology, professional services, financial services, education, healthcare, architecture, engineering, consulting, creative industries, and digital services. Greater mobility, enhanced business collaboration, and stronger commercial partnerships will further reinforce India’s position as a trusted global services provider.

FIEO believes that the agreement will also encourage greater participation of startups, women-led enterprises, and first-time exporters, while strengthening integration with global value chains and promoting innovation-led exports.

Ralhan further emphasised that the successful implementation of the agreement would require sustained awareness, capacity building, and handholding support for exporters.

“FIEO is fully committed to working closely with the Government of India, the Department of Commerce, DGFT, Export Promotion Councils, industry associations, and all stakeholders to help exporters fully utilise the opportunities created under the India–UK Free Trade Agreement. We will organise awareness programmes, training sessions, buyer-seller interactions, and market outreach initiatives to ensure that exporters—particularly MSMEs—are well-equipped to maximise the benefits of this landmark agreement.”

He expressed confidence that the India–UK FTA would contribute significantly towards India’s vision of becoming a leading global trading nation and achieving the country’s long-term export growth objectives and above all the the Hon’ble Prime Minister’s vision of Viksit Bharat by 2047.

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