India-UK free trade agreement to drive growth, says UKIBC chief

UK India Business Council CEO Kishore Jayaraman said the India-UK Comprehensive Economic and Trade Agreement will boost bilateral trade, investment and business expansion across sectors. He said the pact and the Double Contribution Convention will improve mobility, productivity and long-term economic growth

London: There is already “euphoria” within industry over the possibilities opened up by the India-UK free trade agreement, and economic growth for both countries is an inevitable outcome of the pact coming into force this month, according to an industry expert.

The UK-India bilateral Comprehensive Economic and Trade Agreement (CETA) was signed last year and will enter into force on July 15.

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Kishore Jayaraman, Group CEO of the UK India Business Council (UKIBC), said he remains “very bullish” about India and the UK being a “formative force for the future” as a result of the pact.

“India offers capacity and capability, so scalability for businesses that want to scale up in the Indian market just gets that much easier,” Jayaraman told PTI in an interview.

“I think this is a celebration for SMEs, startups and creative people to scale themselves through the capacities and capabilities that India offers and go to the next level of their businesses,” the industry leader said.

“They should be stepping up, understanding what it means, developing a business plan that includes India in their roadmap, and eventually grow, because growth is inevitable through this agreement,” said Jayaraman, who is also a former president of Rolls-Royce in India.

According to official estimates, the total bilateral trade between India and the UK hit 47.9 billion pounds in the four quarters ending in 2025, representing a 10 per cent increase from previous years. Analysts have projected that the CETA can double trade by 2030.

“I think there is already euphoria in the industry over all the possibilities that exist… about the kind of expansion different sectors will witness, from food and beverage, education, digital technologies to energy and infrastructure; there’s a lot of opportunity here for this agreement to enhance trade between the two nations,” said Jayaraman.

The veteran business leader acknowledged that some obstacles and challenges may yet arise during the implementation of the CETA.

“But how we get through those obstacles will come from a strategic intent; that’s what the CETA is about – a strategic intent for both nations to say we can be partners, allow scalability across multiple sectors, and make sure that there is market access and appropriate tariffs,” he said.

Asked to pinpoint the top sectors that he sees benefiting once the agreement comes into force, the UKIBC chief listed advanced manufacturing and engineering, energy and infrastructure, financial services, and digital and artificial intelligence.

“I separate that from tech because tech would be more about heavy engineering work as well. Last, but never the least, would be healthcare and life sciences. But needless to say, there are about three or four more sectors like education, food and beverage and startups,” he said.

Jayaraman, who joined Commerce and Industry Minister Piyush Goyal at the launch of a new ‘CETA Manual: A Business Utilisation Guide’ in London recently, noted that the focus will now shift towards translating the complex trade agreement into a practical roadmap for businesses operating across both markets.

“I think the India-UK corridor has been working very well, but what happens is that when you really want to take it to the next curve, like with any growth curve, if you want to change the curve, there’s got to be very relevant change… and I think the CETA is that change,” he said.

The Double Contribution Convention, which will come into effect alongside the CETA and prevents temporary cross-border workers from having to pay social security contributions in both countries, is also expected to impact the growth curve, he said.

“It’s a win-win for both sides because, at the end of the day, it allows the employee to feel that much better and to celebrate their experience in the United Kingdom and vice versa… the takeaway from that will be greater productivity, greater efficiency, greater motivation and greater mobility,” said Jayaraman.

The India-UK CETA was signed during Prime Minister Narendra Modi’s visit to the UK in July 2025.

After its UK parliamentary ratification process was completed, Modi and British Prime Minister Keir Starmer set July 15 as the date for its “entry into force” – a major milestone for a pact that opened for negotiations in January 2022.

“It’s a relationship that’s there for a lifetime and what this bilateral agreement does is formalise that, so that the industry understands that both nations are very serious about how we trade with each other,” said Jayaraman.

“It is just a testament… I think in marriage parlance it is like a renewal of vows,” Jayaraman added.