While the EU rushes toward a deadline and the US pushes a dizzying blitz of FTAs, India’s negotiation with the UK stands out for its maturity, clarity and mutual ambition. It could just be the most ready-to-close deal — mainly the spark that lights up India’s global trade strategy in 2025. 

For years, India was seen as an unsure participant in global trade: cautious, protectionist, always negotiating but hardly signing, but 2025 feels different. Trade isn’t a part of the agenda — it is the agenda. 

With over 90% of the UK-India FTA finalised and talks progressing with the EU and US, we’re observing a shift — not only in policy, but overall.  

Personally, I believe this isn’t just about trade, it’s about ambition. It’s about India signaling that it’s ready to lead — not follow — in a world where supply chains, markets, and influence are being redrawn. 

These trade agreements will shape the rules of growth, opportunity and investment — for businesses, professionals, and policymakers. 

This article sets the stage: Why FTAs matter now, what’s changed domestically and globally, and how India and the UK are aligning ambition with action. 

Three major forces that are reshaping strategy are: 

• Post-COVID Realignment: Countries are de-risking supply chains. India is now a serious China+1 contender. 
• Brexit’s Aftermath: The UK is forging new economic partnerships — with a clear Indo-Pacific tilt. 
• India’s Reforms: From PLI to Digital India, the country now has a credible economic story to tell the world. 

These shifts are setting the stage for the next decade of global trade where India and the UK’s alignment is critical for both economic resilience & growth. 

• India is being evolved from a risk-averse negotiator to an assertive trade architect — using FTAs to unlock market access, capital, and tech. 

• The UK is redefining itself post-Brexit — pursuing deeper ties with high-growth markets such as India to future-proof its economy. 

This shift from cautious to assertive trade policy is fundamental. Both nations are now aligned in ambition, ready to lead on the global stage. 

The UK–India FTA is over 90% complete — the most advanced deal in India’s current FTA pipeline. The political will is strong on both ends, and the incentives are clear. 

What India Gains: 

• Export Boost: Tariff reductions on key sectors — textiles, footwear, seafood, grapes and mangoes — will improve competitiveness. 

• Tariff Relief: $6.1B worth of Indian goods gain a price advantage in the UK. 

• Services Expansion: Regulatory clarity for Education, IT, and healthcare providers. 

• Capital Inflows: Parallel Bilateral Investment Treaty (BIT) might unlock UK investments in infra, green tech and fintech. 

What the UK Gains: 

• Tariff Barriers Lowered: A staggering 91% of UK goods entering India face tariffs — with duties as high as 100% on Cars and 150% on Scotch. 

• Market Access: UK products like Scotch, cosmetics, pharma and machinery tap into India’s booming middle class. 

• Supply Chain Diversification: Strengthening ties with India enhance long-term resilience. 

• Strategic Positioning: Anchors the UK firmly in the Indo-Pacific: the world’s growth engine. 

Key take-away: The UK–India FTA isn’t just reducing barriers and opening new markets. It’s laying the groundwork for future economic cooperation and positioning both nations at the heart of a reshaped global trade landscape.  

What do you think how this new partnership drive growth and innovation for you, your business, or the industries you care about? 

The UK–India FTA is not just about reducing tariffs or opening any trade lanes — it’s unlocking more deeper investment corridors and future-focused partnerships. 

India’s Side- Catalysing Capital and Innovation 

• Insurance & Financial Services
  With India raising the FDI cap in insurance to 100% (Budget 2025-26), the FTA is expected to give UK-based insurers greater confidence in scaling their operations. Clarity around dispute resolution and data rules may further accelerate entries into a market where over 70% remain underinsured. 

• Green Tech & Climate Infrastructure
  The UK has already been an active co-investor in India’s green transition from EV ecosystems to renewable corridors. A stable trade framework under the FTA can streamline regulatory approvals and ease capital mobility which gives green investors more room to grow. 

• Digital Lending & HealthTech
  FTA-led cooperation on data norms and digital trade governance could provide the regulatory certainty needed for UK FinTech and HealthTech players to grow. With India’s digital public infrastructure maturing the FTA will help UK innovators plug in faster at a proper scale. 

UK’s Side: Expanding Its Innovation Footprint 

India’s rapidly growing digital economy, and its young tech-savvy population present a huge opportunity for the UK’s globally competitive sectors: 

• Manufacturing & Machinery Exports: Beyond tech, the UK also stands to gain from deeper market access for industrial machinery, advanced manufacturing tools and precision equipment — all of which are in growing demand as India ramps up its ‘Make in India’ push. 

• Consumer Goods: Iconic UK exports like Scotch whisky, cosmetics and pharmaceuticals are poised to benefit from tariff reductions tapping into India’s expanding middle-class appetite for quality global brands. 

• Fintech & Regtech: The UK’s expertise in digital payments, risk assessment and compliance tools are finding demand in India’s evolving regulatory landscape. 

• EdTech & Higher Education: India’s hunger for global degrees and digital upskilling creates space for UK institutions to expand cross-border partnerships. 

• AI & Digital Trade: Joint initiatives in AI governance, data standards and cybersecurity are already emerging as frontier areas of cooperation. 

India is no longer on the margins of trade diplomacy. It’s leading with a proper plan: 

External Trigger: Geo-Economic Shifts 

• Realigning global supply chains. 

• US–China tariff wars and friend-shoring trends make India the most preferred partner. 
• Recent FTAs with UAE and Australia show India’s seriousness and readiness to create partnerships. 

India’s Expanding FTA Table: From Reluctance to Reach 

India is now actively negotiating trade agreements with multiple key partners, each strategically chosen to align with domestic growth sectors and global power dynamics. 

Currently open negotiations include: 

• India–UK FTA (launched in 2022, ~90% complete)
  A flagship deal aimed at unlocking tariff-free access for goods and services, boosting investments and cementing the UK’s Indo-Pacific tilt. Talks now mainly focus on high-stakes issues like rules of origin and IP. 

• India–EU FTA (restarted in 2022 after a 9-year pause) 

Ambitious in scope covering sustainability, digital trade and market access. Negotiations are steady but complex, highlighting the size and regulatory depth of the EU. 

• India–GCC FTA (revived in 2022)
  Seeks to deepen trade ties with India’s largest regional trading partner especially in energy, food security, infrastructure and labor mobility. 

• India–Canada Early Progress Trade Agreement (EPTA) (paused mid-2023)
  Designed as a steppingstone to a full FTA — targeting sectors like agriculture, clean tech and services. Talks are on hold due to diplomatic tensions but remains on India’s radar. 

• India–Israel FTA (in discussion)
  Focused on collaboration in defense, cyber tech, Agri-innovation and water management aligning with both countries’ innovation ecosystems. 

• India–EAEU FTA (Russia-led bloc)
  Aims to build alternative trade routes and deepen energy and pharma trade with Eurasian economies amidst shifting geopolitical alignments. 

• India–SACU FTA (Southern Africa Customs Union)
  Seeks to expand India’s trade footprint in Africa by improving access for Indian pharmaceuticals, auto parts and Agri-exports while supporting industrial growth in the region. 

Each of these talks’ shows India’s evolution — from a hesitant negotiator to a global economic actor looking to shape trade rules reflecting both its domestic priorities and international aspirations. 

Why this matters now: These aren’t isolated deals. They’re part of India’s effort to create a trade web — that diversifies its partnerships, protects its supply chains, and supports its ambition of becoming a $5 trillion economy and a global manufacturing and innovation hub. 

Internal Alignment: Policy Meets Purpose 

A few years ago, Make in India was seen as a slogan — but now it’s a signal. 

From smartphones to semiconductors, India is no longer only a low-cost hub. It’s building the muscle to become a high-value and high-trust manufacturing partner. And it’s not only about factories — it’s about ecosystems. 

The shift started when the PLI (Production Linked Incentive) schemes came into the picture. 

With over ₹1.97 lakh crore ($24 billion) earmarked across 14 sectors: from electronics, EVs, pharma to drones and solar — the PLI program isn’t just handing out incentives but also creating scale, pushing R&D and nudging companies to think global. 

• In electronics, it made Apple Co. shift serious iPhone production to India.
• In pharma, schemes helped Indian players become global API suppliers again.
• In batteries and EVs, it’s pulling in Tesla’s suppliers & local innovators alike. 

So, what changed?
India moved from reactive policy to proactive capability-building. And that’s what makes FTAs meaningful now. When a nation is ready to export not just goods — but quality, compliance and innovation — trade pacts become true growth levers. 

Think of FTAs and PLI as twin engines — one opens the market while the other fuels what goes into it. 

Questions for the viewers: 

• What would it take for your industry to plug into India’s new manufacturing narrative? 

• Do you see opportunities where India’s PLI push, and your business goals align? 

Strategic Outcomes: Export Competitiveness 

• Market access in developed economies. 

• Lower costs for key imports (e.g., electronics, pharma). 

• Greater investor confidence in India’s reform trajectory. 

Could your business benefit from India’s new trade dynamics? Do let us know how you think India’s export strategy can open opportunities for you. 

Post-Brexit, the UK is using FTAs to reimagine its global trade footprint — and India plays a key role. 

External Trigger: Indo-Pacific Strategy 

• Indo-Pacific accounts nearly for 40% of global GDP. 

• Along with FTAs with Australia, NZ, and CPTPP, India helps diversifying UK trade. 

Where do you think the UK’s Indo-Pacific strategy will take its future trade? How do you see the UK’s partnerships in this region affecting industries beyond trade? 

Domestic Alignment: Levelling Up Through Trade 

• Creating jobs across UK regions — especially in auto, education, and financial services. 

• Supporting SMEs (98% of whom are exporters) by reducing red tape and improving predictability. 

Do you think this could be a model for your own country or region? 

Strategic Outcome: Investment and Innovation 

• India’s digital rise is a perfect match for UK strengths in AI, fintech and creative industries. 

• Potential to deepen cooperation in clean energy, research and sustainability. 

How might India’s growth in the digital and clean tech sectors create new opportunities for collaboration? What potential projects or industries excite you about the future of this partnership? 

FTAs are no longer slow bureaucratic exercises. In 2025, they are becoming economic tools of transformation. India is not just negotiating from the sidelines anymore — it’s stepping up with intent.

The UK, too, isn’t just reacting post-Brexit — it’s strategically building. 

Together, they aren’t just signing deals — they’re shaping a future where trade powers transformation. 

This article lays the groundwork — why 2025 is a turning point for India’s trade story and why UK–India FTA is more than just a bilateral deal. 

What’s coming up next: 

Part 2: Sectoral Wins — Where the Real Opportunity Lies