AFTER NEARLY FIVE YEARS of waiting for a major breakthrough, Britain’s ambitions outside the European Union found a willing yet calculating partner in India. The UK’s earlier post-Brexit trade wins include USD 20 billion with Japan and USD 1.3 billion with Australia but this agreement with India is its biggest and most promising yet.
For Britain, this agreement is a launchpad to regain lost ground in global trade. For India, it is a hard-won opportunity, leveraging Britain’s urgency. Emma Rowland of the UK Institute of Directors called it “a win for the UK, removing barriers and business costs for firms trading with the fourth-largest global economy,” but India has ensured that the terms suit its long-term interests.
BIG WINS FOR INDIA
Bilateral trade is expected to reach USD 34 billion annually, a 60 per cent jump over 2024–25, with tariffs removed on almost all Indian exports to Britain. UK investments in India are likely to grow, creating jobs and facilitating technology transfer. A 2024 report from the Britain Meets India reveals that there are 667 UK companies (up from 635 in 2023) operating in India with revenues more than USD 63.88 billion. On the other hand, India Meets Britain 2025 report says 1197 Indian companies (increase from 971 in 2024), are functioning in Britain with revenues of USD 97 billion.
Indian sectors poised to gain include engineering goods, auto parts, chemicals, sports goods, toys, gems and jewellery. Most notably, the textile industry will see the current 10 per cent tariff scrapped, helping it stay competitive against Bangladesh and Vietnam.
AGRICULTURE AND FOOD SECTOR GET A BOOST
Britain and India are also deepening ties in agriculture. Under Cambridge University’s Prof. Richard Griffiths, eight UK and 14 Indian institutions are collaborating on the TIGR2ESS programme to boost India’s grain output from 300 million tonnes to 450 million tonnes over the next 15 years. Tariff-free access means Indian agricultural exports can rival those from Spain, the Netherlands, North Africa, Philippines and even from Pakistan.
INDIA’S TALENT SECTOR
India’s talent in IT, finance and education will get a more beneficial call in the coming years. Over 60,000 Indian professionals will be able to work in the UK annually. This, combined with existing Indian corporate presence in Britain, will streamline cross-border talent flows and strengthen India’s services exports.
HOW BRITAIN GAINS
The UK will gain access to India’s USD 51.1 billion central procurement market, opening opportunities in healthcare, infrastructure and education. British exporters of cosmetics, chocolate, alcohol, industrial machinery, automobiles, and technology will benefit from simplified customs, reduced entry thresholds, and removal of technical barriers. This will also allow the small and medium companies to easily operate in India. There are also animated parleys between these countries for more cooperation in education, and possibly, India would allow more UK universities to open their direct branches.
A GENDER-FORWARD TRADE DEAL
This is the first FTA signed by India that explicitly recognises gender equality. Chapter 23 of the agreement sets up a joint working group to ensure inclusive development, protect women workers and entrepreneurs and integrate social considerations into trade policy.
STRATEGIC CONTEXT
This pact joins a series of agreements India has signed since 2021- with Mauritius, the UAE, Australia, and the European Free Trade Association. Analysts believe it could offset some of the impact of Trump’s threatened 50 per cent tariff on Indian goods. More importantly, the CETA reflects India’s evolution as a confident global negotiator. Bringing in the aspects of gender equality, poverty alleviation and carbon emission reduction to the trade agreement will have an profound impact. Without this focus, the broad-based pacts will not bring about an inclusive growth for the world population set to reach 10 billion by 2050. India is also holding talks with major economies such as the US, European Union and the Association of south east Asian nations for more free trade agreements, and is also exploring afield with Latin America, Africa and Gulf Arab.