The UK-India Business Council (UKIBC) on Wednesday, 3 June, welcomed the visit of Peter Kyle, the United Kingdom's Secretary of State for Business and Trade, to New Delhi and pressed for accelerated implementation of the India-UK Free Trade Agreement (FTA). Kyle held talks with Commerce and Industry Minister Piyush Goyal on bringing the pact into force at the earliest, the industry chamber said in a statement.

What the FTA promises

Bilateral trade between the UK and India is already worth £48 billion annually, according to the UKIBC. The FTA, once operational, will liberalise 99 per cent of UK tariffs and 90 per cent of Indian tariffs, the chamber noted, framing it as a route to ‘cheaper, quicker, and easier exports and trade between markets.'

Signed in July 2025, the agreement has been described by the UKIBC as the United Kingdom's ‘most economically significant bilateral trade agreement' since its exit from the European Union. The pact spans 30 chapters covering trade, innovation, labour, environment, and gender cooperation — making it among India's most comprehensive trade deals to date.

What UKIBC leadership said

‘This is a comprehensive trade detail between the world's fourth and sixth largest economy, is in its final stage, after years of careful negotiations. And with the current geopolitical economic scenario, this agreement will unlock massive opportunities for businesses and consumers in the UK and India,' said Dr. Kishore Jayaraman, Group CEO, UKIBC.

The chamber added that the growing momentum in the UK-India trade and investment corridor reflects long-term business confidence and a shared ambition to build ‘future-facing economic ties.'

Context of the visit

Earlier in May, Goyal held a virtual interaction with the UK trade minister to explore ways to deepen bilateral trade and investment ties while fully leveraging opportunities under the India-UK Comprehensive Economic and Trade Agreement (CETA). Wednesday's in-person engagement is widely seen as a push to convert that dialogue into a firm operational timeline.

India's wider FTA strategy

India has been steadily expanding its network of free trade agreements as part of a broader strategy to integrate more deeply into global supply chains. According to a recent report, India's trade with strategic FTA partners grew 92 per cent between FY21 and FY25, significantly outpacing the 41.5 per cent rise in India's overall merchandise trade with the rest of the world.

India currently has nine FTAs covering 38 countries, including agreements with the UAE, Australia, EFTA nations, the UK, Oman, New Zealand, and the European Union. Last month, Goyal also underlined the importance of a balanced and responsive World Trade Organization (WTO) that effectively addresses the concerns and aspirations of developing countries and Least Developed Countries (LDCs).

What's next

With the agreement now described as being in its ‘final stage,' attention shifts to ratification timelines on both sides and the issuance of sectoral rules. Indian exporters in textiles, leather, gems and jewellery, and engineering goods stand to gain early visibility once tariff schedules are notified.