UK FTA is a turning point in how India engages with West

The signing of the free trade agreement (FTA) between India and the UK last week was no ordinary moment — not just because 99% of Indian exports to the UK will now enter tariff-free, or because British luxury cars and Scotch whisky are about to get cheaper.

- Syed Zafar Islam

The real story is India’s evolving place in global trade — more assertive, more selective and no longer willing to play by someone else's rulebook.

The immediate economic benefits are eye-catching. For British exporters, tariff cuts on whisky (down from 150% to 75% right away, and to 40% in a decade), high-end vehicles, cosmetics and dairy offer new access to India’s swelling consumer base. For Indian exporters, particularly in textiles, jewellery, EVs, marine products and generics, the UK market is now wide open, with tariff advantages over rivals like China and Vietnam.

The UK's access to Indian public procurement markets and its offer to exempt Indian professionals from social security payments sweeten the deal further. Also, Indian yoga teachers, chefs and tech workers will find short-term visas easier to secure — a meaningful breakthrough on the politically sensitive issue of mobility and immigration

India’s MSMEs are expected to be among the biggest winners. Industry analysts estimate a 30-40% rise in Indian exports to Britain in the next five years. That’s not just numbers on paper — that’s jobs on the ground, especially in states like Gujarat, Tamil Nadu and Maharashtra.