PR No – 105
8th May, 2025
New Delhi
Aligning India-UK FTA with National Manufacturing Mission to boost exports, scale PLI sectors and enhance competitiveness, suggests PHDCCI to Shri Piyush Goyal, Hon’ble Commerce and Industry Minister in its meeting with industry associations
During an industry interaction with Shri Piyush Goyal, Hon’ble Commerce and Industry Minister, the President of PHDCCI, Mr Hemant Jain, lauded the signing of historic forward looking agreement and presented recommendations to unlock the transformative potential of the FTA.
India-UK trade and investment relations have strengthened over the years as total (merchandise and services) trade stood at over USD 60 billion in FY 2024-2025 and India received around USD 1.2 billion in FDI in FY 2023-2024, said Mr Hemant Jain.
Mr Hemant Jain highlighted that this landmark trade deal is poised to accelerate the total trade to over USD 120 billion by 2030, with elimination of tariff on 99% of Indian exports to the UK including key high growth sectors such as textiles, footwear, leather products, pharma and auto parts, among others.
Additionally, the agreement will further improve trade facilitation, streamline trade processes and enhance global competiveness as the agreement not only address tariff issues but also eases provisions related to non-tariff barriers, said Shri Hemant Jain.
Mr Jain further appreciated the groundbreaking social security agreement ‘Double Contribution Convention’ that exempts Indian professionals from social security contributions for three years, enhancing labor mobility, financial gains and reducing costs for Indian service providers deploying workers to the UK.
This ‘game changer’ agreement represents a significant opportunity for small and medium enterprises by enhancing market access, simplified regulatory environment, improved business mobility, fostering innovation, and generating millions of jobs, said Shri Jain.
PHDCCI suggested linking of the India–UK FTA with the National Manufacturing Mission (NMM), aligning NMM incentives (PLI schemes) with FTA opportunity sectors, launch support schemes to help exporters align with UK’s evolving ESG norms and prioritize high-potential sectors (e.g., apparel, auto components, seafood, ICT services) with tailored technology, finance and labour frameworks for the UK market.
This comprehensive FTA will amplify India’s manufacturing capabilities, boost exports, catalyse investments, enhance global competitiveness, positioning India as a global manufacturing export hub, said Shri Jain.
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Warm Regards,
Media Division, PHDCCI