India-UK FTA: India Inc, global firms say trade deal to boost exports, innovation, talent flow

The signing of the India-UK Free Trade Agreement (FTA) has been hailed by industry leaders across both countries as a "historic" and "transformative" moment. From CEOs of key companies like Mahindra and Rolls-Royce to top leaders from industry bodies such as CII and FICCI, there is a consensus that the deal is a win-win, with consequences that extend far beyond traditional tariffs to areas like innovation, sustainability, and talent mobility.

Here is what different industry leaders have to say about the landmark trade agreement:

'Make in India', tech, luxury cars to gain: Auto industry

Anish Shah, Group CEO & MD, Mahindra Group, said the agreement is not just a win for trade but a blueprint for a modern, values-led partnership. "The UK-India Vision 2035 aligns closely with our strategic priorities, building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. As Indian industry becomes increasingly global in its footprint and ambition, we look forward to contributing meaningfully to this next chapter of UK-India cooperation."

Tufan Erginbilgic, Chief Executive Officer, Rolls-Royce Plc, called it a "landmark" deal that will allow both countries to work closely in defence, technology, and innovation. "Rolls-Royce is growing its aerospace capabilities in India, and we look forward to working with Indian partners to co-develop power and propulsion technologies for India and the world, building on 60 years of successful technology transfer. This will unlock benefits of job creation, technology development, and manufacturing growth.”

The Automotive Component Manufacturers Association of India (ACMA) said the CETA could benefit the Indian auto component sector through enhanced opportunities for exports and streamlined regulatory processes, particularly in key areas such as electric mobility, precision engineering, and lightweight materials. "Indian MSMEs, which form the backbone of our industry, stand to gain from the liberalised terms of trade and improved access to UK markets. The agreement will also promote collaboration in R&D, skilling, and innovation, especially in green and digital technologies," said Shradha Suri Marwah, President, ACMA.

A spokesperson for auto major JLR said the FTA will deliver reduced tariff access to the Indian car market for JLR's luxury vehicles. "India is an important market for our British-built products and represents significant future growth opportunities.”

Welcoming the FTA, Sudarshan Venu, Managing Director, TVS Motor Company, said the deal opens new frontiers for Indian companies to take ‘Make in India’ to the world. "We are particularly excited given the launch of new Norton vehicles this year, which will benefit from the strengthening of trade links between India and the UK. It energises our global ambitions and strengthens our resolve to build world-class products and brands.”

'CETA to eliminate tariffs, boost MSMEs, services trade'

The India-UK CETA will open up nearly 100% of trade between the two economies and eliminate tariffs on key Indian exports—from textiles and auto parts to seafood and jewellery—boosting MSMEs, job creation, and growth in labour-intensive sectors. "UK firms will gain access to India’s vast consumer market. It is not just merchandise trade but in services trade as well; Indian professionals will benefit from relaxed visa norms and a landmark social security deal," said Agneshwar Sen, Trade Policy Leader, EY India.

Bipin Sapra, Partner and Indirect Tax Trade Leader, EY India, said that while the agreement offers certain concessions to UK industries, the Indian industry will remain resilient and competitive across most product categories, including high-consumption segments like chocolates and cosmetics. The deal will reduce tariffs on nearly all Indian goods, enabling UK consumers to access more affordable textiles, food products, and a wide range of goods like leather, footwear, and jewellery, added Suresh Nair, Indirect Tax Partner - Consumer Products and Retail, EY India.

Calling it a "watershed moment," Anil Talreja, Partner, Deloitte India, said this will go a long way to mitigate external shocks while unlocking untapped market potential. "This will also enable India and the UK to tailor partnerships based on complementary strengths—be it in technology, manufacturing, or services."

Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co, says the India-UK Social Security Agreement will make cross border mobility more viable by eliminating the burden of double social security contributions benefitting business and employees alike. "The agreement on Double Contribution Convention reflects a growing recognition of the need for portable social protection in a globalised economy."

'Game-changer for exports, competitiveness'

The delegation accompanying PM Narendra Modi to the UK included 16 key business leaders from Indian industry, which was led by Sunil Bharti Mittal, Chairman, Bharti Enterprises and Co-Chair of the India-UK CEO Forum. The delegation was organized by the CII. "Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment. Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors,” said Mittal.

The India-UK FTA is expected to reduce trade barriers, enhance investor confidence, and promote joint ventures and technology transfers, especially in labour-intensive sectors like textiles & apparel, leather & leather goods, gems & jewellery, and marine products.

Another key benefit of the FTA is a reciprocal Social Security Agreement, allowing Indian professionals in the UK to continue home country contributions for up to three years. Chandrajit Banerjee, DG of CII, said, "It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships between Indian and UK businesses.”

ASSOCHAM said the FTA is a game-changer for the Indian industry. "The deal will not only boost our export potential and manufacturing competitiveness, particularly in sectors like textiles and leather, but also open new growth avenues in innovation and services," said Sanjay Nayar, President, ASSOCHAM.

According to FICCI President Harsha Vardhan Agarwal, the agreement aligns with the industry body's vision of deeper global economic integration. "It complements the objectives of Atmanirbhar Bharat by empowering domestic industries to scale globally, engage competitively, and leverage value chains more effectively."

PHDCCI President Hemant Jain said the agreement is a testimony to the strategic depth that will lead to the doubling of bilateral trade to over $120 billion with the UK by 2030. "We commend both governments for finalising a deal that promises to catalyse bilateral trade, enhance the competitiveness of Indian SMEs, and open new doors for industries in manufacturing, services, and technology sectors."

'Launchpad for entrepreneurs, Alcobev, logistics'

Abhimanyu Munjal, MD & CEO, Hero FinCorp, said the India–UK FTA is a launchpad for India’s entrepreneurs to tap global demand, scale faster, and lead with confidence. Abhishek Khaitan, Managing Director, Radico Khaitan, said the signing of the UK-India FTA marks a pivotal moment for the alcobev industry. This is a welcome move that signals a momentous growth for both countries. "For Radico Khaitan Ltd., as one of the largest importers of Scotch whisky, we foresee significant strategic and cost advantages from this development. We have estimated our Scotch requirements valued at over ₹250 crore in FY26, and this treaty represents a substantial opportunity for value creation."

On the other hand, the reduction in import duties on Scotch whisky and gin will not only enhance consumer access to premium international spirits but also enable Indian companies to strengthen cross-border collaborations and accelerate premiumisation in the domestic market. "More broadly, this agreement is a win-win, empowering Indian enterprises to elevate their global competitiveness while showcasing India's excellence and innovation on the world stage."

Shashi Kiran Shetty, Founder and Chairman, Allcargo Group, says for the logistics industry, this translates into faster clearances at ports and airports, reduced compliance costs, and a boost in overall supply chain efficiency. "As Indian and UK businesses prepare to scale and diversify their operations, the logistics and supply chain sector is poised to play a crucial enabling role in helping our exim trade reach its full potential — thereby accelerating the nation’s economic growth."