The India-UK Free Trade Agreement (FTA) is a landmark pact that will significantly boost Indian exports, sharpen the competitiveness of domestic industries, and deepen economic ties between the two democracies, NABARD Chairman Dr. Shaji Krishnan V said on Thursday, 16 July. Speaking in Mumbai, the head of the National Bank for Agriculture and Rural Development described the deal as a milestone that delivers zero-duty access for several Indian products while reducing tariffs on others.

What the FTA Means for Indian Industry

'From an economic perspective, the agreement will help boost India's exports by providing zero-duty access on many products and reducing tariffs on others. More importantly, it is a comprehensive agreement that covers trade, investment, services and technology,' Dr. Krishnan said.

He noted that greater market access and increased economic openness will allow Indian industries to expand their global footprint, improve competitiveness and enhance business turnover. He stressed, however, that realising these gains requires a strong enabling environment at home. 'The key task ahead is to complement this agreement with a strong enabling environment at home so that India can fully realise the benefits of this landmark deal,' he added.

NABARD's Expanding Role in Rural Infrastructure

Dr. Krishnan used the occasion to outline NABARD's strategic repositioning. The institution, he said, has moved well beyond its traditional mandate of credit supply and rural liquidity management to become a major financier of rural infrastructure and an investment enabler across the rural economy.

'NABARD is repositioning itself as a rural infrastructure financier while helping identify investment gaps across the rural sector,' he said. The bank is also mapping agricultural value chains to ensure sustainable livelihood creation through investments spanning production, processing, marketing and distribution.

Strengthening Cooperatives and FPOs

NABARD is working closely with Farmer Producer Organisations (FPOs) and cooperative institutions to build their capacity and deepen their participation in the rural economy. As part of these efforts, nearly 70,000 primary cooperative societies have already been computerised — a move Dr. Krishnan said will improve transparency, traceability and operational efficiency across the sector.

Institutional reforms and capacity-building initiatives are also transforming NABARD into what he described as an 'institution builder' and a catalyst for sustainable rural development.

Protecting Farmers in Trade Negotiations

On the intersection of trade policy and agriculture, Dr. Krishnan underscored that Prime Minister Narendra Modi has consistently emphasised protecting the interests of small and marginal farmers, artisans and other rural producers during trade negotiations. 'These agreements are not driven solely by market economics; they are also about protecting livelihoods. The government has remained sensitive to this reality,' he said.

The India-UK FTA, years in the making, is widely seen as one of the most consequential bilateral trade deals India has concluded in recent years. With implementation details still being worked out, the focus now shifts to whether domestic policy can keep pace with the market opportunities the agreement unlocks.