Commerce and Industry Minister Piyush Goyal has described India’s newly signed Free Trade Agreement (FTA) with the United Kingdom as “game-changing”, calling it an important “stepping stone towards the dream of Viksit Bharat”. According to The Times of India, he emphasized that the agreement was negotiated on Indian terms, aligning with the country’s vision for rapid, sustainable economic growth.
India’s Economic Vision Backed by Strong Trade Pact
Mr. Goyal highlighted that the FTA represents a strategic triumph for India, securing tariff concessions for key sectors and shaping the country’s global trade posture. He noted that 99% of Indian exports to the UK—including textiles, gems, machinery, processed foods—will become duty-free. While UK duties on imports such as whisky, gin, and automobiles will slowly be reduced, India has firmly maintained protections for critical sectors like agriculture and dairy.
This deal, the first comprehensive trade pact India has signed with a European nation, provides a vital template for future agreements with other economies, reflecting India’s “Make in India” and Viksit Bharat ambitions.
Consultative and Strategic Approach to Negotiations
Goyal underscored that the government held extensive consultations with industry stakeholders, farmers’ groups, and civil society before finalizing the pact. He affirmed that no major concessions were made that would endanger domestic industry or public interest. According to him, the deal strikes a careful balance between opening markets and preserving India’s developmental and regulatory autonomy.
Industry leaders view this inclusive process as a positive shift from earlier, more opaque FTA negotiations, citing it as evidence of a more transparent and accountable policymaking approach.
Benefits for Labour-Intensive Export Sectors
Trade experts say the deal is expected to strengthen India’s status as a global supplier of labour-intensive goods. Textile hubs such as Tiruppur, Ludhiana, and Surat, along with leather goods clusters in Kanpur and Agra, are projected to benefit from zero-duty access. With estimated exports worth over ₹5 million jobs tied to trade with the UK, this deal could bolster employment and reinforce manufacturing competitiveness.
Limited Consumer Relief on Imported Products
Despite pundits praising tariff reductions on imports such as British whisky and cars, Mr. Goyal cautioned that consumers should expect modest price relief at best. Officials noted that customs duty is often just one component of final costs, with state excise taxes, logistics and retailer margins still driving retail prices. Consumers are likely to see only small savings—but firms and exporters are poised for long-term gains.
A Model for Future Trade Pacts
The government presents this FTA as a benchmark for upcoming negotiations with the EU, United States and other advanced economies. By securing access to services, government procurement markets and professional mobility (including visa and social security concessions), the design of this agreement may inform future bilateral and multilateral deals. Goyal stated that India now aims for greater harmonization with global standards while preserving certain policy red lines.
A Vision-Aligned Trade Deal
According to Goyal, the India–UK FTA is more than an economic accord—it is a strategic affirmation of India’s aspiration to achieve developed-nation status by 2047. He described it as a game-changing moment that aligns with the national ambition of Viksit Bharat, where trade policy, employment, and investment channels converge to support inclusive progress.
Photo Source: HT
