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India-UK FTA Seen as Buffer Against US Trade Headwinds
The Business Guardian
|August 01, 2025
The recently signed Free Trade Agreement (FTA) between India and the United Kingdom is expected to help India manage the impact of 25 percent tariff announced by the United States President Donald Trump, noted Economist Dipanwita Mazumdar.
Mazumdar said the India-UK trade deal can now act as a buffer against the U.S. amid the challenging tariff times.
"India-UK trade deal is also a testimony of India's footsteps towards integrating in global supply chain. The fine print of the details is positive in terms of employment generation," she told ANI.
The economist highlighted that the agreement would support employment growth, especially in labor-intensive sectors such as fish products, chemicals, jewellery, leather, and textiles. The automobile sector is also likely to benefit from reduced tariff rates under the agreement. Mazumdar anticipated future bilateral trade deals on parallel lines.
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