What Does the New India-UK Trade Agreement Mean for Businesses?

Significant Trade Agreement Signed

London: Piyush Goyal, the Minister of Commerce and Industry, expressed optimism regarding the free trade agreement between India and the UK, which aims to increase bilateral trade to USD 112 billion by the year 2030.

The Comprehensive Economic and Trade Agreement (CETA) was officially signed by Goyal and UK counterpart Jonathan Reynolds, with Prime Minister Narendra Modi and British Prime Minister Keir Starmer present during the ceremony.

During a discussion with business leaders following the signing, Goyal remarked, "Investors are eager to enhance their investments. The manufacturing and industrial sectors are keen on expanding their markets. The services industry is particularly enthusiastic about the growth opportunities. There is a collective commitment from both government and private sectors to double trade between our nations by 2030."

Anuj Chande, a Partner at Grant Thornton UK and Head of the South Asia Business Group, noted, "This agreement is undoubtedly beneficial for both countries, featuring significant tariff reductions. This marks the beginning of our journey together, not the conclusion."

Kishore Jayaraman, who chairs the UK India Business Council (UKIBC), emphasized that tariffs have been adjusted to levels that facilitate trade and economic growth without hindrances. He added, "Moreover, this agreement acknowledges the vast potential in sectors such as digital technology, defense, life sciences, and agriculture, allowing for faster delivery of products and services to the citizens of both nations."