India-UK FTA in focus as Peter Kyle visits Delhi; £48 billion trade partnership set for next phase

UK Business and Trade Secretary Peter Kyle arrived in New Delhi on Tuesday to accelerate the implementation of the India-UK Free Trade Agreement (FTA), as the two countries seek to unlock the next phase of a bilateral trade relationship valued at £48 billion (approximately $64.7 billion) annually.

FTA rollout gains urgency amid global trade volatility

Kyle is scheduled to hold discussions with Commerce and Industry Minister Piyush Goyal on bringing the India-UK Comprehensive Economic and Trade Agreement (CETA) into force at the earliest. The visit comes at a time of heightened global trade uncertainty, with ongoing geopolitical tensions and supply chain disruptions prompting countries to deepen economic partnerships and diversify trade links.

According to the UK government, the agreement will liberalise 99% of UK tariffs and 90% of Indian tariffs, making trade between the two countries cheaper, faster and easier. The pact is expected to create new opportunities across sectors ranging from automobiles and advanced manufacturing to food and beverages, professional services and technology.

“From whisky to automotives, this landmark deal will unlock massive opportunities for businesses and consumers in the UK and India,” Kyle said ahead of his visit.

The UK minister described the agreement as a major economic opportunity for both countries. “I look forward to working with Piyush Goyal to make sure everybody can start to feel the benefits as soon as possible,” he said.

Industry engagement, next steps for CETA rollout

While in New Delhi, Kyle is also expected to meet Indian and British industry leaders to help businesses prepare for the agreement’s rollout and discuss ways to maximise its commercial benefits.

The India-UK trade pact, concluded earlier this year after several rounds of negotiations, is being positioned as one of the most significant trade agreements signed by both nations in recent years. For the UK, it is regarded as the largest and most economically significant bilateral trade deal negotiated since its exit from the European Union.

“The UK-India FTA is the biggest and most economically significant bilateral trade deal the UK has agreed since leaving the European Union. It covers 30 chapters — including standalone chapters on gender, innovation, environment, and labour — making it one of the most comprehensive trade deals that India has ever signed,” the UK government said in a statement.

The agreement is expected to boost bilateral trade, enhance market access for businesses on both sides, and strengthen investment flows between two of the world's fastest-growing major economies.