An India-UK FTA is expected by the end of July, ahead of that the British government unveiled the first “Trade Strategy”. The trade strategy is not linked to the Indian FTA, but has the broader goal of preparing local businesses to take advantage of the opportunities that should come their way.
The Global Trade Outlook released along with the Trade Strategy, notes that “Asia is expected to benefit from standout growth from India and a new generation of fast growing emerging markets.”
“Asia’s centre of growth is expected to shift from China to India,” the outlook says, also underscoring that the “comprehensive agreement” with India is reflective of the “transformative” impact FTAs can make.
Important to understand that the FTA is still under negotiation, but the UK expects to benefit from savings estimated at 400 billion pounds as India cuts tariffs on existing trade alone.
“And that’s before factoring in savings from easier and speedier trade from improved customs and digital commitments,” the outlook says. “This immediate relief represents a major advantage our businesses will enjoy over their international competitors.”
Prime Minister Keir Starmer heralded the strategy as “a promise to British business,” declaring that “what works for business, works for Britain.” He added, “It means more jobs, more opportunities, and more money in people’s pockets.”
The new Trade Strategy positions the UK as a more agile and connected trading nation, with an emphasis on high-growth sectors and faster, more pragmatic deals.
Business and Trade Secretary Jonathan Reynolds described the approach as a necessary recalibration in light of shifting global dynamics.
“Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before,” he said.
The ambitious blueprint is designed to unlock billions in export opportunities and modernise the UK’s approach to trade.
Trade Defence and Sectoral Gains
Beyond expansion, the strategy strengthens the UK’s trade defence tools, including reforms to its trade remedies system, ahead of the 2026 expiry of UK steel safeguard measures. It also aims to enhance recognition of professional qualifications and broaden clean energy collaborations with countries like Japan, South Korea, and Norway.
The UK will also join the WTO’s Multi-Party Interim Appeal Arbitration Arrangement (MPIA), reinforcing its commitment to a rules-based international trading system.
Douglas Alexander, Minister for Trade, described the strategy as a “hard-headed, data-driven, and agile” roadmap. “We will promote what we can and protect what we must to advance the UK’s national interest,” he said.
One wonders whether there is a comparable exercise in India to prepare the ground for not just the India-UK FTA, but every other FTA India is negotiating.
