The India-UK FTA, which has been in force since July 15, 2026, is expected to broaden business opportunities through enhanced market access and generate fresh employment prospects for the country's young population, the study said.
According to the study, labour-intensive sectors, including textiles, leather, engineering goods, pharmaceuticals, and automotive, are expected to benefit from deeper market access under the agreement. As a result, both employment generation and export promotion are likely to receive a significant boost.
The study further stated that sustained competitiveness will be essential for India to fully realise the agreement's potential. Indian businesses will need to comply with product quality standards, certification requirements, Rules of Origin compliance, and international sustainability standards to maximise the opportunities created by the FTA.
Nirmal K Minda, President of Assocham, said that ease of doing business reforms, along with continued investments in infrastructure and supply chains, will play a crucial role in enabling businesses to meet these requirements.
The engineering goods sector is also expected to gain from the agreement, providing fresh momentum for the growth of micro, small and medium enterprises (MSMEs) and supporting job creation. In addition, simpler customs procedures and digital trade provisions are expected to streamline compliance, reduce turnaround time, and create a more agile trading environment, Minda said.
The study noted that the India-UK CETA brings together two complementary economies. While India offers a large market, a young working population, a strong MSME base, and strengths in labour-intensive industries, the UK complements these advantages with advanced technology and expertise in high-value services.
Assocham said these complementary strengths are expected to support long-term economic engagement, expand trade, encourage collaborative innovation, and strengthen supply chain resilience amid an increasingly uncertain global economic environment.
The study concluded that as the global economic landscape becomes more complex to navigate, the India-UK FTA represents an important milestone in strengthening the economic relationship between India and the United Kingdom.
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