India-UK FTA: Experts call deal 'most substantive', project £28 bn trade boost, 1 mn jobs

Experts and industry leaders have praised the India-UK Free Trade Agreement, signed on Thursday, calling it a transformative step in India's global economic integration. From auto and technology to trade and taxation, experts appreciate the commitments made by the government in the auto sector. They also believe the India-UK FTA could be the most impactful among all other trade deals signed by India in the past five years, projecting £28 billion trade boost and 1 million jobs.

SIAM President Shailesh Chandra says this landmark development marks a step forward in strengthening India’s global economic engagement, particularly with developed economies. "As two major economies enter a new phase of partnership, SIAM appreciates the government’s extensive stakeholder consultations throughout the negotiation process. Concluding this transformative agreement amid global trade uncertainties reflects India’s growing leadership in shaping modern trade and investment frameworks."

He said the commitments made by the government concerning automotive sector tariffs strike a thoughtful balance, addressing consumer interests while supporting the broader goals of Indian industry. "We view this agreement as part of a wider strategic engagement and believe it opens new avenues for collaboration and opportunity with a key global partner."

Himanshu Tewari, Partner, Trade and Customs, KPMG in India, says among the series of trade agreements signed by India in the past five years—with Australia, UAE, EFTA countries, etc.—the India-UK Comprehensive Economic Agreement will be the "most substantive" and impactful in creating opportunities for Indian exporters and the Indian economy at large.

Sector gains are sharp: steep tariff reductions on UK auto and EV exports, fast-track approvals in pharma and biotech, and 20% growth in financial services exports projected over five years, say experts. The digital and tech corridor, already over £20 billion strong, could also deepen with clearer rules on data, IP, and talent mobility.

Under the renewed FTA 2035 vision, the agreement extends the corridor’s strategic runway by five critical years, giving businesses and investors a longer horizon to plan, partner, and grow, says Navin Agrawal, Partner and Head - India UK Corridor, KPMG in India. "With 26 chapters finalised, it is expected to unlock £28 billion in additional trade, drive a £3.3 billion uplift to UK GDP, and support up to 1 million jobs across both economies."

The trade pact is also seen as a step forward in opening up new opportunities for trade and growth. "It’s great to see how India’s proactive push on such agreements is helping our businesses expand globally, stay competitive, and also, in some way, show that India is ready to play a bigger role in the world economy," says Abhishek Jain, Partner and National Head - Indirect Tax, KPMG in India.

EY India technology sector leader Nitin Bhatt says the UK-India Double Contribution Convention under the updated DTAA allows tech companies to avoid dual social security payments (NIC and EPF) for cross-border employees for up to 36 months. "This reduces assignment costs and simplifies workforce mobility between the two countries. However, companies need to be careful about planning the compensation model from an immigration wage, tax, and social security perspective in the UK and India to manage compliance effectively."