India-UK Free Trade Agreement Set to Push Bilateral Trade to $100 Billion by 2030, Boosting FMCG and Healthcare Sectors

In a major economic development, India and the United Kingdom concluded a historic Free Trade Agreement (FTA) this week that is projected to increase bilateral trade by over two-thirds, potentially reaching $100 billion by 2030. Industry leaders in New Delhi lauded the agreement on Tuesday, emphasising its strategic and economic significance for both nations.

The agreement, finalised after extensive negotiations, is expected to deepen commercial cooperation and unlock new opportunities for Indian exporters, particularly in the fast-moving consumer goods (FMCG), healthcare, and innovation-led sectors.

“The timely agreement will help advance a comprehensive strategic partnership between India and the UK, steering bilateral trade toward the ambitious target of $100 billion by 2030,” said Sanjiv Puri, President of the Confederation of Indian Industry (CII). According to Reuters, bilateral trade between the two countries stood at £42.6 billion (around $57 billion) in 2024, with India ranked as the UK’s 11th largest trading partner.

The Federation of Indian Chambers of Commerce & Industry (Ficci) called the FTA a “bridge to shared prosperity”. Its president, Harsha Vardhan Agarwal, said: “It brings a new momentum to sectors like FMCG, healthcare, and innovation-driven enterprises.”

Industry representatives noted that their key demands were reflected in the final agreement, including improved market access for Indian goods, streamlined worker mobility, and a social security provision to avoid double contributions to social funds—a significant benefit for Indian professionals in the UK.

Assocham described the deal as a “win-win” for both sides, predicting a positive impact on export competitiveness and foreign investment.

Beyond commerce, analysts highlight the geopolitical dimension of the agreement. The deal aligns with India’s strategic aim to diversify trade partnerships beyond traditional markets while reinforcing its ties with the UK amid shifting global economic alliances.

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