India-UK FTA expected to double trade, deepen investment and healthcare ties, say industry experts

The proposed India-UK Free Trade Agreement (FTA) is set to significantly boost bilateral trade, deepen investment flows and enhance cooperation in sectors such as healthcare, technology and textiles, industry leaders told CNBC-TV18 following the high-level meeting between Prime Minister Narendra Modi and UK Prime Minister Keir Starmer in Mumbai.

Both leaders held comprehensive discussions to expand cooperation across business, education, defence and innovation, and agreed to accelerate efforts to finalise the trade deal. The pact, described by Starmer as the UK’s most important trade agreement since Brexit, is expected to open up major opportunities for industries on both sides.

Harsha Vardhan Agarwal, Vice Chairman and Managing Director of Emami, said the agreement could be a game-changer for Indian exports. “It is expected that the $60 billion trade by 2030 could double to $120 billion. Around 99% of Indian export items will have no duty,” he said, adding that the deal will benefit labour-intensive sectors such as leather, garments, jewellery and marine goods. “It is a very good deal, and we really look forward to its implementation,” Agarwal added.

Textile exporters also see a major boost coming. Harish Ahuja, Managing Director of Shahi Exports, said the FTA will help level the playing field for India, which had been at a disadvantage compared to Bangladesh, Sri Lanka, Pakistan and Vietnam, all of which already enjoy trade agreements with the UK.

“Our apparel exports could go three to four times higher in a matter of two years,” he said. “Despite a 12% duty disadvantage, we were getting good orders from UK customers. Once the duty is removed, orders will increase significantly.”

On the healthcare front, Sangita Reddy, Joint Managing Director of Apollo Hospitals Group, said the agreement will strengthen collaboration in treatment, medical research and education. “The NHS clearly has a waiting list and is looking for partnership opportunities with Indian hospitals,” she said.

Reddy added that the research tie-ups between Indian and UK institutions would help develop more comprehensive artificial intelligence algorithms and promote innovation in predictive medicine. She also noted that the agreement’s new focus on consumer protection, labour rights and innovation marks a “futuristic framework” for international cooperation.

Anant Goenka, Vice Chairman of the RPG Group and Senior Vice President of FICCI, said the FTA has instilled fresh optimism among business leaders. “There was great camaraderie and trust between the trade ministers. That positivity gives confidence to investors,” he said.

Goenka noted that a three-year exemption from social security payments for Indian employees working in the UK will benefit the technology sector, while the pharmaceutical industry could see new opportunities in R&D partnerships and technology sharing.

Industry leaders agreed that the deal will not only double trade but also set the stage for broader economic collaboration between India and the UK, spanning innovation, education and sustainability. The FTA, once ratified, is expected to mark a new phase in bilateral relations built on what Prime Minister Modi described as “trustworthiness, talent and technology.”

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