India UK FTA Set to Boost Trade Talent and Tech Ties
- India UK FTA nearing implementation giving businesses confidence and boosting trade in sectors such as pharma electronics and food processing
- Eased mobility for professionals through simplified visa rules and social security exemption improving global competitiveness of Indian talent
- Stronger bilateral cooperation opening new opportunities in artificial intelligence defence investment and startups enhancing strategic ties
Union Commerce Minister Piyush Goyal hailed Prime Minister Narendra Modi’s recent visit to the UK as a historic milestone, emphasizing that the outcomes of the visit will be remembered for years to come. He highlighted the extensive and productive discussions held between PM Modi and British Prime Minister Keir Starmer during the short yet impactful trip.
Speaking to IANS, Goyal stated that the bilateral talks covered a broad spectrum of critical areas including trade, investment, export controls, defence cooperation, and artificial intelligence (AI). At the forefront was the long-anticipated India-UK Free Trade Agreement (FTA), which Goyal confirmed will be implemented in the coming months.
"Businesses now have the certainty that this is going to happen. They can begin integrating India into their supply chains, placing orders, and ensuring product quality", Goyal said. He also noted that the agreement would spur investment flows and economic activity in both nations.
The FTA is expected to benefit key Indian manufacturing sectors such as engineering goods, electronics, pharmaceuticals, chemicals, plastics, and food processing. It also promises to make premium UK products more accessible to Indian consumers.
India’s booming services sector stands to gain significantly, with improved access to UK markets in IT, finance, education, and legal services. The agreement simplifies visa norms, easing mobility for Indian chefs, musicians, yoga instructors, business visitors, and other professionals.
A notable highlight is the Double Contribution Convention, exempting Indian professionals and their employers from paying UK social security contributions for three years a move Goyal termed a 'significant breakthrough' in cost competitiveness.
The FTA also boosts opportunities for Indian startups by connecting them to UK investors and innovation ecosystems, expanding their global presence.
