India-UK FTA to Boost Key Economic Sectors: RBI

Mumbai

RBI Governor Sanjay Malhotra said on Friday that the India-UK Free Trade Agreement (FTA) will benefit several sectors, specially manufacturing, services, and agriculture, he noted that with multilateral trade talks slowing down, India should pursue more bilateral agreements like the UK FTA.

He added that trade talks with the US are progressing well, and several other agreements are in the pipeline. Commerce Minister Piyush Goyal also confirmed that discussions are underway with countries such as New Zealand, Oman, Chile, Peru, and the EU.

The India-EFTA Trade and Economic Partnership Agreement (TEPA) will take effect from October 1 and is expected to generate around 1 million direct jobs.

Malhotra called the India-UK FTA a major step, giving nearly 95% of Indian farm products duty-free access to the UK. The deal is expected to empower MSMEs, startups, farmers, and workers by unlocking new trade opportunities.