India-UK FTA: Exporters size up rivals in a foreign field

The deal comes just as higher tariffs from the US threaten to disrupt key export sectors

- Dhirendra Kumar

With US tariffs looming and global trade uncertainty rising, India's exporters are turning to the newly signed free trade agreement (FTA) with the UK as a lifeline—one that eliminates tariffs on nearly 100% of Indian exports to open a vital market for textiles, gems and engineering goods.

The deal comes just as higher tariffs from the US threaten to disrupt key exports, prompting Indian businesses to recalibrate their strategies.

The UK's zero-duty access positions it as a strategic alternative, as Indian exporters grapple with the US decision to impose an additional 26% duty on Indian products—a measure temporarily paused until 8 July. The bilateral trade agreement (BTA) with the US is not expected until the fall (September to November).

"The UK has become a strategic alternative, offering zero-duty access for labour-intensive exports such as apparel, garments, handmade jewellery and engineering goods," said Dattesh Parulekar, assistant professor of international relations at Goa University.