The United Kingdom’s latest trade strategy positions India as Asia’s “standout growth engine” and emphasises the country’s rapid economic rise. According to the Department of Business and Trade’s ‘Global Trade Outlook 2025’, India is expected to become the world’s third-largest economy by 2028. The Free Trade Agreement (FTA) signed with India is defined as a key component of the UK’s strategy to strengthen global trade ties and boost economic growth.

Officials anticipate that the UK-India FTA will provide major benefits by lowering tariffs, opening markets, and streamlining customs procedures. The agreement could save British exporters up to GBP 400 million per year immediately, with potential savings of GBP 900 million over the next decade. Lower tariffs and clearer trade laws would improve access to Indian markets for UK items like whisky, cosmetics, and medical devices.

British Prime Minister Keir Starmer emphasised that such agreements support domestic industry, create new jobs, and benefit the economy as a whole. 

The India-UK trade agreement is scheduled to be formally inked next month if all necessary permissions are completed. Piyush Goyal, India’s Commerce Minister, acknowledged the country’s preparedness to implement the contract as soon as legal procedures are completed.