Session on India-UK Free Trade Agreements organized at Ludhiana by DGFT 

Ludhiana, August 26, 2025: Directorate General of Foreign Trade (DGFT) in association with Federation of Indian Export Organisations (FIEO) jointly organized an Interactive session on “India-UK Comprehensive Economic & Trade Agreement” at Ludhiana. The session was conducted by experts from DGFT, India EXIM Bank, FIEO, ECGC Ltd along with prominent Consultants & Academicians from the Region.

During his interactive address Utpal Kumar Acharya, ITS, Joint DGFT (RA) Ludhiana said that, “India, which became the 4th largest economy during the year 2025 and is projected to be the 3rd largest by the year 2027 and the UK remains the 6th largest in global economic order. The India- UK Trade Agreement is the one of its kind of agreement to grant “0%” duty access to Indian exporters on around 995 products lines exported to UK”. He also added that, “Sectors like textiles, apparel, gems & jewelry, agriculture, marine products and pharmaceuticals will be benefitted, along with enhanced market access for IT and service professionals in UK. In return, UK exporters will also gain from reduced Indian tariffs on goods such as whisky, automobiles, machinery, and consumer products. This agreement expected to come into force may be in next 9 to 12 months period once getting node from both side parliamentary set ups”.

During his Adress Vinay Sharma, Head-FIEO Punjab said that, “The exports play a critical role in the economic growth of any country. India's exports are doing well and the future looks promising. The Government of India is also Actively Undertaking Policy Reforms and as a part of it, India & UK recently signed a “Comprehensive Economic and Trade Agreement (CETA)”, that too after three to five years of negotiations. This marks a major achievement in strengthening economic ties between the two nations. The India–UK FTA opens unprecedented opportunities across key sectors, especially for MSMEs and labor-intensive industries. It does not only reduce tariffs but also eases regulatory barriers for services and investments. The Agreement will also make a way for cooperation in sectors like defense, security, critical technologies, education, tourism benefiting both the parties.

Santosh Kumar, Branch Manager, ECGC Ltd, during his address said that, “The India – UK FTA is expected to boost Indian exports, particularly in labor-intensive sectors like textiles and leather is good news looking and this will further promote economic stability and growth. Under this agreement there will also be an increased quotas for Indian workers in few sectors in the UK and a three-year exemption from social security payments, enhancing labor mobility and service trade cooperation". Further, highlighting the ECGC’s role in promoting exports by providing credit risk insurance and protecting exporters and banks against commercial and political risks”.

Monika Khullar, Chief Manager, EXIM Bank of India during her interaction said that ,” By the year 2030, India is projected to become the 3rd largest economy, creating immense opportunities for exporters and such key trade agreements hold the future key to be a developed nation in coming years”. She also emphasized the need for Indian exporters to focus on Branding, Sustainability, Compliance and Value-Added Production for which India Exim Bank’s financial and advisory support may help companies in maximizing the opportunities arising from this landmark Trade Deal. She also shared the role of Exim Bank in supporting exporters through Lines of Credit, Buyer’s Credit,  Trade Assistance Programme (TAP), Export Factoring and MSME-focused initiatives like UBHARTE SITAARE.

CA Ravi Chopra, Partner, Parshottam & Associates said that, “The immense opportunity will open for Indian exporters once this FTA get implemented. Sectors such as Textiles, Leather, Footwear, Gems & Jewellery, Marine Products, Auto Components, Engineering Goods, will enjoy duty-free access from earlier imposed average tariffs of 8–16%. He further said that the projected trade growth, is expected to double by 2030 between both partner countries, providing India a competitive edge over countries like Bangladesh, Vietnam and other competitors in UK market”. He also urged the participants to plan in advance and be ready to encash when  opportunity arrives, the use of digital trade platforms, alternate sales channels and government support schemes will play a key role making the FTA a strong enabler of India’s journey towards becoming a developed nation in future.

Dr. Ati Priye, Chief Executive Officer, CGC University shared that, “The trade agreement marks a historic shift from colonial-era trade imbalances to a modern partnership of equals. The agreement is projecting a target of $100 billion trade by 2030. Through this agreement, Investment flows are expected to become more balanced. Key areas for UK firms for investment includes. Manufacturing, Infrastructure, Financial Services, Innovation, IT are the sectors where UK will look forward into investing in India. UK exporters will gain access to India’s 1.4 billion-consumer market, particularly in segments like automobiles, whiskies, agriculture and few more. The Indian manufacturers from textiles, footwear, seafood sectors will benefit from the proposed “Nil Tariffs Percentage” in the UK, giving an easy pass and competitive advantage among its other competitors”. 
 
This highly interactive session was well attended by close to 90 prominent exporters from Ludhiana & surrounding regions.