India-UK FTA to Boost Trade, Manufacturing: Mittal

• The India-UK FTA is expected to double trade to $120 billion and attract UK manufacturers to India.
• Indian professionals will have easier access to work in the UK under relaxed mobility rules.
• The agreement strengthens cooperation in defence, education, and business expansion.

Sunil Bharti Mittal, Chairman of Bharti Enterprises, and Co-Chairperson of the India-UK CEO Forum, has stated that India is bound to emerge as the most compelling universal nexus for British manufacturers given the recently signed India-UK Free Trade Agreement (FTA).

The FTA was signed earlier this week after more than 14 rounds of negotiations over three years and four UK Prime Ministers. The newly agreed FTA is anticipated to more than double bilateral trade from US$56 billion to US$120 billion in just five years.

Sunil Bharti Mittal said, "If I were a British businessman, and I know that the duties are known now, the country is open for business, we can move people between the two countries in a seamless manner — it makes the decision-making in boardrooms much stronger in going into India to manufacture".

Mittal also highlighted that the new tariff structure as set out by the FTA underscores the appeal of India as a place of business for UK manufacturers. Average duties on UK imports into India will drop from 15% to a mere 3% which will allow a considerable increase in trade flows.

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He noted that even where certain sectors such as automobiles and alco-beverages exposed concern, it considered and agreed to satisfactory countermeasures in the final agreement. "The UK has deep technologies and India has the scale, talent and low-cost manufacturing. When you combine these complementary benefits, you become a force multiplier", he added.

The FTA will also add considerable value to India's services sector, especially in terms of mobility opportunities that will allow Indian professionals, including chefs, healthcare professionals, musicians, and educators, to relocate to the UK with less restrictions than before. "This actually delivers a significantly higher benefit for India… in the end it’s got to be a win-win", Mittal stated.

Indian companies are likely to enhance their existing footprint in the UK in the form of acquisitions of similar businesses. We can already see some firms like TVS, Kama, Nykaa, and Forest Essentials making investments in British markets for technology and access to their customer base.

In addition to commerce, the FTA fosters cooperation in defence, space and education. With four UK Universities entering India, and with political goodwill from both governments, the FTA was a real achievement in revamping India-UK economic and strategic ties. Chandrajit Banerjee, Director General of CII stated, "Joint degrees, academia-to-academia partnerships, and new campuses in India — all of this is now possible".