India-UK trade pact sparks industry euphoria ahead of July 15 rollout

London,UPDATED: Jul 5, 2026 14:24 IST

Industry is already seeing "euphoria" over the opportunities created by the India-UK free trade agreement, and economic growth for both countries is "but inevitable" once it comes into force on July 15, UK India Business Council Group CEO Kishore Jayaraman has said. He told PTI he remains "very bullish" about India and the UK being a "formative force into the future" through the pact.

The India-UK bilateral Comprehensive Economic and Trade Agreement (CETA), signed during Prime Minister Narendra Modi's visit to the UK in July 2025, will take effect this month after completing the UK parliamentary ratification process. Official estimates show bilateral trade between India and the UK reached 47.9 billion pounds in the four quarters ending in 2025, marking a 10 per cent rise from previous years, while analysts have projected that the CETA could double trade by 2030.

"India offers capacity and capability, so scalability for businesses that want to scale up in the Indian market just gets that much easier," Jayaraman said. Calling it "a celebration for SMEs, startups, and for creative people to scale themselves through the capacities and capabilities that India offers and go to the next level of their businesses", he said companies should "be stepping up, understanding what it means, developing a business plan that includes India in their roadmap, and eventually grow, because growth is but inevitable through this agreement".

Jayaraman said there is already "euphoria in the industry of all the possibilities that exist" and about the expansion sectors could see, "from food and beverage, education, digital technologies to energy and infrastructure". Asked which sectors could gain the most once the agreement comes into force, he named advanced manufacturing and engineering, energy and infrastructure, financial services, and digital and artificial intelligence. "I separate that from tech because tech would be more of heavy engineering work as well. Last, but never the least would be healthcare and life sciences. But needless to say, there are about three, four more sectors like education, food and beverage and startups," he said.

He acknowledged that obstacles and challenges could still emerge during implementation. "But how we get through those obstacles will come from a strategic intent; that's what the CETA is about - a strategic intent for both nations to say we can be partners, allow the scalability across the multiple sectors, and make sure that there is market access, and there is appropriate tariffs," he said. Referring to the recent launch in London of the new 'CETA Manual: A Business Utilisation Guide' with Commerce and Industry Minister Piyush Goyal, Jayaraman said the focus will now shift to turning the trade deal into a practical roadmap for businesses in both markets. "I think the India-UK corridor has been working very well, but what happens is that when you really want to take it to the next curve, like with any growth curve, if you want to change the curve there's got to be very relevant change... and I think the CETA is that change," he said.

Jayaraman also said the Double Contribution Convention, which will come into effect alongside the CETA and will stop temporary cross-border workers from paying social security contributions in both countries, is expected to support growth. "It's a win-win for both sides because at the end of the day, it allows the employee to feel that much better and to celebrate their experience in the United Kingdom and vice-versa... the takeaway from that will be greater productivity, greater efficiency, greater motivation, and greater mobility," he said. Summing up the wider significance of the pact, he said, "It's a relationship that's there for a lifetime and what this bilateral agreement does is formalises that, so that the industry understands that both nations are very serious about how we trade with each other," adding: "It is just a testament... I think in marriage parlance it is like renewing of vows."

With PTI Inputs

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