India-UK FTA to boost trade, investments; bilateral commerce may double to $120 billion by 2030: ASSOCHAM

The India-UK Comprehensive Economic and Trade Agreement (CETA) is set to unlock significant business opportunities for companies in both countries, with bilateral trade expected to nearly double to around $120 billion by 2030 from about $58 billion in FY26, according to industry body ASSOCHAM.

In a statement, ASSOCHAM President Nirmal K. Minda described the agreement as a “historic milestone” in India’s free trade agreement (FTA) journey, saying it brings together two of the world’s oldest democracies under a comprehensive economic partnership.

Under the agreement, 99% of India’s exports to the UK will receive duty-free market access. In return, India has agreed to eliminate tariffs on 89.5% of its tariff lines for UK products.

According to ASSOCHAM, the pact is expected to provide a major boost to several export-oriented sectors in India, including textiles, leather, marine products, gems and jewellery, engineering goods, and chemicals. On the UK side, industries such as automobiles, beverages and spirits, life sciences, and healthcare are expected to benefit from improved market access.

“The duty-free market access will strengthen business opportunities in both countries by leveraging complementarities, expanding trade volumes, promoting investments, and generating greater economic welfare,” Minda said.

He noted that the agreement is the culmination of nearly four years of sustained negotiations and expressed confidence that its implementation would translate into tangible gains for businesses in both economies.

ASSOCHAM said it is looking forward to the early implementation of the agreement, adding that the CETA has the potential to usher in a new phase of economic cooperation between India and the UK by boosting trade, investment flows and overall economic engagement.