India-UK FTA Signals Strategic Global Trade Shift: SBI Report

2025-05-08 02:07:32

(MENAFN- KNN India) New Delhi, May 8 (KNN) The Free Trade Agreement (FTA) between India and the United Kingdom represents a strategic global trade realignment aimed at reducing dependence on China, navigating challenges from US tariffs, and helping the UK reshape its post-Brexit economy, according to a report by the State Bank of India (SBI).

The multi-billion-pound agreement will reduce tariffs on 90 percent of traded goods, benefiting businesses on both sides.

"FTA signal a new global trade strategy, bypassing China's dependence, navigating US tariffs and reshaping post BREXIT Britain," the report stated.

The deal is projected to increase bilateral trade between India and the UK by EUR 25.5 billion in the long term while raising the UK's GDP by EUR 4.8 billion and boosting wages by EUR 2.2 billion annually.

India's trade share with the UK has already grown from 1.69 percent in 2022-23 to 1.91 percent in 2024-25, with total bilateral trade currently standing at approximately USD 60 billion and expected to double by 2030. In the current fiscal year, India's exports have grown despite a 6.1 percent decline in imports.

Covering goods, services, and technology, the FTA focuses on inclusive growth, strengthening supply chains, and job creation.

The UK has opened several sectors including information technology, finance, education, and consumer goods, creating opportunities for Indian exports in labour-intensive industries such as textiles, toys, marine products, and auto components.

While immigration rules remain largely unchanged, the agreement provides for limited professional movement.

The SBI report highlighted that approximately 1,800 to 2,000 visas will be granted annually to Indian professionals, including chefs, musicians, and yoga instructors, underlining the FTA's support for cultural ties between the nations.

The prime ministers of both countries are expected to meet soon to formally sign the agreement before it advances for parliamentary approval in both nations.

(KNN Bureau)

MENAFN08052025000155011030ID1109525323

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.