New Delhi, May 6 (IANS) India's apex business chambers and trade organisations on Tuesday hailed the landmark India-UK Free Trade Agreement, terming it a major milestone achieved under the leadership of Prime Minister Narendra Modi.

Confederation of Indian Industry (CII) President Sanjiv Puri said: "CII commends the Government of India for finalising the landmark India-UK Free Trade Agreement. This transformative accord reflects our shared commitment to deepening economic ties, bolstering technology collaboration, diversifying global supply chains, and fostering a more business-friendly environment."

Guided by the 2030 Roadmap, the timely agreement will help advance a comprehensive strategic partnership between India and the UK, steering bilateral trade towards the ambitious target of $100 billion by 2030, Puri said.

Federation of Indian Export Organisations (FIEO) President S.C. Ralhan said: "The India–UK FTA eliminates or significantly reduces tariffs on a wide range of Indian goods, giving our exporters preferential access to one of the world’s most affluent and consumption-driven markets. Key sectors poised to benefit include: Textiles & Apparel as removal of tariffs will enhance India’s competitiveness against countries like Bangladesh and Vietnam."

"Leather & footwear will gain through increased access to high-end UK retail markets. Besides, Gems & Jewellery Pharmaceuticals as well as Agriculture & Processed Foods will get better access to the UK market."

The FTA includes provisions on investment facilitation, intellectual property, digital trade, and dispute resolution - offering long-term predictability to UK investors. This will further strengthen India’s position as a preferred investment destination in the Indo-Pacific region, he added.

The UK India Business Council (UKIBC) said the landmark trade deal, when signed, will represent a major step forward in strengthening the economic and strategic partnership between the UK and India.

The agreement promises to reduce barriers to trade and investment, promote sustainability and innovation, and encourage closer cooperation across industries, including technology, manufacturing, services, education, and healthcare. With India being one of the fastest-growing major economies and the UK a global leader in innovation and services, this agreement is poised to deliver significant benefits to businesses of all sizes, the UKIBC said.

Currently, the total trade between the UK and India was 42 billion pounds in the four quarters to the end of Q2 2024, an increase of 9.7 per cent year-on-year. This level of trade has almost doubled from before the pandemic - in 2019, the year before the pandemic, UK-India trade was only 24.1 billion pounds.

UKIBC Chair Richard Heald said the landmark trade deal reflects the deep trust, shared values, and mutual ambition that define the UK-India relationship. "This agreement will unlock new opportunities for businesses across both countries, drive economic growth, create jobs, and support innovation and collaboration across sectors."

"We are delighted to have worked closely with both governments and with businesses throughout the negotiation process. Our members and clients are excited about the opportunities that will now open up. UKIBC remains committed to supporting businesses to navigate the new framework and to fully realise the benefits of this historic agreement," he added.

Assocham President Sanjay Nayar said: "Assocham, on behalf of Indian industry, commends PM Modi for his leadership in concluding a path breaking trade agreement with the United Kingdom. This landmark India–UK Free Trade Agreement and the Double Contribution Convention is a win-win for both nations and will deepen our Comprehensive Strategic Partnership, fostering trade, investment, innovation, and wealth creation."

--IANS

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