India-UK trade pact boost: Industry body hails FTA as ‘transformational milestone’, gems and jewellery sectors eye big gains
Indian industry leaders on Thursday welcomed the signing of the India-UK free trade agreement (FTA) as a “transformational milestone” for bilateral economic relations, praising its potential to expand exports, boost investment, and catalyse joint ventures across multiple growth sectors.Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum, said the agreement would stimulate innovation, ease market access, and foster investment. “Indian industry across all sectors welcomes the India-UK FTA with great optimism,” he said, quoted PTI. “This agreement establishes a modern, forward-looking partnership.”The Confederation of Indian Industry (CII) echoed the sentiment, noting that the agreement will deepen bilateral cooperation in clean energy, digital technologies, life sciences, and advanced manufacturing.“This FTA marks a defining moment in our bilateral relationship, reflecting a shared commitment to inclusive growth, economic resilience, and industrial transformation,” said Chandrajit Banerjee, Director General of CII. “It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships.”The trade pact, once ratified by the British Parliament, is expected to reduce barriers in labour-intensive sectors like textiles, leather, gems and jewellery, and marine products. It also includes a reciprocal social security agreement that will allow Indian professionals to continue contributions to Indian schemes while working in the UK for up to three years.Gems and jewellery exporters see significant upside. Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), called the deal a “landmark accord” that could nearly triple exports to the UK. “Currently, exports to the UK stand at $941 million; with the duty concessions in place, this figure is poised to surge to $2.5 billion within the next three years,” he said.British companies also welcomed the deal, particularly those in the aerospace and spirits industries. Rolls-Royce CEO Tufan Erginbilgic said the FTA will help deepen co-development in power and propulsion technologies with Indian partners.Nik Jhangiani, Interim CEO of Diageo, applauded the phased reduction in Scotch whisky tariffs from 150% to 75%, and eventually to 40%. “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured,” he said.Chivas Brothers Chairman and CEO Jean-Etienne Gourgues said the agreement would be a “game changer” for Scotch whisky exports to India. “The deal will support long-term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid,” he added.The deal is expected to accelerate bilateral trade and investment, with business groups urging both governments to expedite ratification and implementation.
