New Delhi [India], May 7 : Hemant Jain, President of the PHD Chamber of Commerce and Industry (PHDCCI), on Tuesday welcomed the signing of the Free Trade Agreement (FTA) between India and the United Kingdom, calling it a "strategic and forward-looking treaty" that will boost trade, investment, and skilled workforce movement.
According to a statement from the Prime Minister's Office, "Prime Minister Modi and Prime Minister Starmer had earlier welcomed the conclusion of a mutually beneficial India-UK FTA and the Double Contribution Convention. The two leaders described it as a historic milestone in bilateral Comprehensive Strategic Partnership. The Agreements will foster trade and economic cooperation, boost innovation and job creation, promote mobility."
In his statement, Jain said, "I believe this is a very strategic and forward-looking treaty. Until now, most of our FTAs were limited to ASEAN countries or nations like Singapore. This agreement with the UK gives our products free access to a large and mature market."
He also noted that the agreement will make it easier for professionals to move between the two countries. "From today, the movement of professionals will also be liberalized, which is a huge win," he added.
Jain highlighted that bilateral investments will increase. "There will be bigger investments both from India into the UK and vice versa. Overall, I think it is a positive stand taken by the government here," he said.
He pointed out that in the context of the global "China Plus One" strategy, the agreement puts India in a stronger position to become an alternative to China in global supply chains. "With the ongoing global trend of 'China Plus One,' this deal gives India a natural edge," he said.
He also listed the sectors likely to benefit the most from the deal, including textiles, pharmaceuticals, rice, steel, and engineering products.
Jain ended by congratulating the Indian government. "My compliment to the entire government for giving access to a larger market like India to us. The UK remains a significant global economy, and gaining access to its market, especially where China was dominant, positions India strategically," he said.
Meanwhile, Prime Minister Narendra Modi also welcomed the agreement while speaking at the ABP Network India@2047 Summit.
He said the agreement marked the beginning of a new chapter in the growth of both countries.
"I am glad to inform you that India-UK trade union has been finalised. The two world's biggest open markets have come together, which will add to their histories. This will also open new opportunities for the MSMEs sector," Modi said.
"Today is a historic day for India. I spoke to the British Prime Minister a while ago... I am happy to inform you that the India-UK free trade agreement has now been finalised. This agreement on mutual trade and economic cooperation between the two largest and open-market economies of the world will add a new chapter in the development of both countries," he added.
The Commerce and Industry Ministry said in a statement that the "historic and ambitious deal" will boost jobs, exports, and national growth.
According to the ministry, 99% of Indian exports will now face zero duty under the FTA. The agreement will also boost trade in services, especially in sectors such as IT, financial and professional services, business services, and education.
The ministry said the deal supports India's vision of Viksit Bharat 2047 and aligns with both countries' growth goals.
In his speech, PM Modi also spoke about the goal of making India a developed country by 2047.
"The presence of such a large number of youth and women in this summit is unique in itself. This is a reflection of the changing India, which is raising its voice in every field. The biggest dream of this changing India is - a Developed India by 2047 (Viksit Bharat). The country has capability, the country has resources, and the country also has willpower," he said.