New Delhi /London, July 26: India and the United Kingdom signed a landmark Free Trade Agreement (FTA) on Thursday, aimed at enhancing market access, stimulating innovation, and boosting bilateral investment flows, in what business leaders hailed as a transformative step in the countries’ economic partnership.
The deal, which follows years of negotiations, was described by Indian industry leaders as a modern and forward-looking framework that will unlock significant opportunities for businesses on both sides.
“This FTA establishes a modern partnership that will stimulate innovation, ease market access, and foster investment,” said Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, who also co-chairs the India–UK CEO Forum. “Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors.”
Prashant Ruia, Group CEO of Essar, called the signing “a watershed moment” in bilateral ties. “The agreement marks the beginning of a new era of strategic collaboration between the two nations. By lowering tariffs, easing market access, and deepening services and investment flows, this landmark deal unlocks immense potential for both economies,” he said.
Industry associations also welcomed the move. Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), said the pact reflects a shared commitment to inclusive growth, economic resilience, and industrial transformation.
“This FTA marks a defining moment in our bilateral relationship. It creates a strong foundation for deeper market access, regulatory cooperation, and next-generation partnerships between Indian and UK businesses,” Banerjee said.
Anish Shah, Group CEO and MD of Mahindra Group, called the agreement “a transformative moment in the global economic landscape.”
“It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration,” Shah said, adding that the deal reflects India’s rising stature as a trusted partner and innovation hub in the global order.
The FTA is expected to significantly reduce trade barriers and enhance cooperation in sectors including manufacturing, technology, services, and clean energy. It comes amid growing strategic alignment between India and the UK, with both governments seeking to diversify economic partnerships and deepen ties in the Indo-Pacific region.
