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India-UK FTA truly game changer in trade, investment and services sectors: Piyush Goyal

25 Jul 2025 Evaluate

Commerce and Industry Minister Piyush Goyal has said that the India-UK Free Trade Agreement (FTA) is truly a game changer in trade, investment and services sectors. He said it was ‘remarkable’ that a journey which started over two decades ago culminated with a historic prime ministerial visit and in a very ‘fair, equitable and balanced agreement’ that ensures the possibility to double India-UK trade to $120 billion in the next five years. He noted that ‘Our farmers will get a lot of opportunities, because we can process those farm products and market them in the UK. Our MSME sector will get a plethora of opportunities in aircraft parts and auto components, various engineering products. Our textiles will see a massive spurt in demand, because now on a competitive basis, we will be right on top with zero duties’.

He said whether it's leather, footwear, toys, furniture, pharma products, a very wide range of India's own strengths, which we are currently exporting in big measure across the world, will find markets in the United Kingdom. He also highlighted the Double Contribution Convention (DCC), which has been agreed to be enforced alongside the FTA. He explained ‘Our people who come and serve in UK for short term, two years or three years, who today land up losing almost 25 per cent of their earnings in Social Security, which never gives them any benefit, will now have an opportunity under the DCC to pay this money into their provident fund account in India, and that money will be secure. That money will be giving them an over 8 per cent tax-free return and will become their pension and Social Security in the long run’.

He noted that though the parliamentary ratification process in the UK will take some time, the signing process gives businesses certainty for the long run due to bipartisan support in Britain for the agreement. He said ‘The UK parliamentary process will take a few months. The good part is that it has always had bipartisan support. It was largely negotiated when the Conservatives were in power, and today, with the Labor government, it has culminated into a robust and very fair and balanced agreement, and therefore, I think this will get cleared pretty quickly’.

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