New Delhi
The India-UK Free Trade Agreement (FTA), which came into force on July 15, is expected to nearly double bilateral trade to $115 billion by 2030 while generating an estimated 7-10 lakh new jobs, according to a study by the Associated Chambers of Commerce and Industry of India (Assocham).
The study said the agreement will expand business opportunities through improved market access and strengthen employment prospects, particularly for India’s young workforce. Labour-intensive sectors such as textiles, leather, engineering goods, pharmaceuticals and automobiles are expected to emerge as major beneficiaries, driving both exports and job creation.
The engineering goods sector is likely to receive a significant boost, encouraging the growth of micro, small and medium enterprises (MSMEs) and creating additional employment opportunities. The agreement’s provisions on simpler customs procedures and digital trade are also expected to reduce compliance burdens, improve turnaround time and make cross-border trade more efficient.
Assocham noted that the India-UK Comprehensive Economic and Trade Agreement (CETA) combines the strengths of two complementary economies. While India offers a large consumer market, a young workforce, a strong MSME ecosystem and competitive labour-intensive industries, the United Kingdom brings advanced technology and expertise in high-value services.
The study, however, stressed that India must maintain its global competitiveness to fully realise the benefits of the agreement. Businesses will need to comply with product quality standards, certification norms, Rules of Origin requirements and sustainability benchmarks. Continued reforms to improve ease of doing business, alongside investments in infrastructure and supply chains, will be critical for maximising the FTA’s long-term economic gains.