The much awaited Free Trade Agreement (FTA) between India and the United Kingdom (UK) is going to be fully implemented from the 15th of next month. That means, now 'Made in India' products are going to make a huge splash in the British markets. This is not just a paper agreement, but a direct proof of India's growing strength in the global market. As soon as this deal is implemented, Indian exporters will get huge rebate on tax (tariff) in UK. The biggest loss will be suffered by the trade of our neighboring countries (Bangladesh and Pakistan). In fact, when Indian goods reach Britain without heavy taxes, their prices will reduce. In such a situation, British buyers will turn to India, due to which the established markets of Pakistan and Bangladesh may be lost.
After the implementation of this agreement, about 6 percent of Bangladesh's exports to Britain can be directly affected. At the same time, about 2 percent of Pakistan's exports will suffer a major blow. The main reason for this is that now Indian goods will get better access in all the categories of products in which these countries compete with India in the UK market. According to the data of the year 2025, India had exported 15.17 billion dollars to Britain, while Bangladesh was limited to only 5.07 billion dollars. The situation in Pakistan was even worse. India's export base is already very strong, which is going to reach a new height after this FTA.
If Bangladesh is going to suffer the biggest loss in any one sector, it is the textile industry. Bangladesh has a significant presence in Britain in the matter of readymade garments. But now the concessions given to Indian textile products will spoil this entire equation. According to an estimate, Bangladesh's exports to Britain worth about $298.2 million are under direct threat. Of this, about $288.3 million comes from the textile sector alone. It is clear that now Indian textile companies are fully prepared to give tough competition to Bangladeshi businessmen in Britain.
India has always been a big player in the global rice market. In the year 2025 alone, India had sold milled and semi-milled rice worth about $149.8 million to the UK. In contrast, Pakistan could send rice worth only $43.3 million. In another rice category also, India's total exports stood at $94.5 million, which is more than both Thailand and Pakistan. After implementation of FTA, taxes will be reduced, due to which Indian rice will become cheaper in Britain. The result of this will be that it will become almost impossible for Pakistan to sell rice there. Pakistan's trade worth about $38.5 million is going to be directly affected.
The benefit is not limited to just clothes or rice. Indian companies are also going to have silver in processed food and pharmaceuticals. In the matter of drug manufacturing, India has proved its mettle across the world. Our exports in the 'Drug Formulation' category alone have crossed $880 million. Now, with the imposition of lower tariffs in Britain, Indian pharmaceutical companies will get a great opportunity to expand their scope. Experts clearly believe that this agreement will not only increase the trade of India or UK, but will also change the entire structure of exports from Asia. This is a big opportunity for India to establish its roots in the huge consumer market of Europe.
