📷 Image: Wikimedia Commons / Alecsandra Dragoi / No 10 Downing Street
Business
India‑UK FTA Could Double Merchandise Trade to $45‑52 Billion, Create 10 Lakh Jobs
✍️ Fortune India
🗓 25 Jul 2026, 11:05 AM
👁 1
A recent report estimates that a comprehensive India‑UK trade agreement could double merchandise trade to between $45 billion and $52 billion, and generate up to 10 lakh jobs within five years.
A new analysis suggests that a fully negotiated free trade agreement (FTA) between India and the United Kingdom could lift bilateral merchandise trade to a range of $45 billion to $52 billion, effectively doubling the current volume.
The study also projects that the FTA would create up to 10 lakh jobs across various sectors in India over a five‑year horizon, offering a significant boost to employment.
The figures are based on existing trade flows and assume the removal of tariffs on a wide array of goods, as well as the alignment of regulatory standards between the two economies.
Industry experts note that sectors such as pharmaceuticals, information technology, and automotive components stand to benefit the most from the expanded market access.
Both governments have indicated that negotiations are progressing, with a final agreement expected within the next few years if the current momentum is maintained.
The study also projects that the FTA would create up to 10 lakh jobs across various sectors in India over a five‑year horizon, offering a significant boost to employment.
The figures are based on existing trade flows and assume the removal of tariffs on a wide array of goods, as well as the alignment of regulatory standards between the two economies.
Industry experts note that sectors such as pharmaceuticals, information technology, and automotive components stand to benefit the most from the expanded market access.
Both governments have indicated that negotiations are progressing, with a final agreement expected within the next few years if the current momentum is maintained.