Daijiworld Media Network- New Delhi
New Delhi, Jul 25: The recently finalised Free Trade Agreement (FTA) between India and the United Kingdom is expected to significantly boost trade volumes and transform the services sector, according to National Stock Exchange (NSE) CEO Ashishkumar Chauhan.
Speaking to NDTV Profit, Chauhan stated that the current India-UK services trade, valued at around $56 billion, is poised to more than double to $120 billion over the next five years, thanks to the new trade pact.
“This FTA opens up the services sector in a big way, along with key areas like pharma, agriculture and labour-intensive industries,” Chauhan remarked, emphasising India’s strategic advantage.
Union Minister of Commerce Piyush Goyal, in a post on social media platform X, highlighted that the FTA unlocks $23 billion in opportunities for sectors that are labour-intensive, paving the way for inclusive and gender-equitable growth.
Key Benefits Under the India-UK FTA:
• 75,000 Indian workers in the UK will be exempted for three years from social security contributions.
• 1,800 Indian professionals – including chefs, yoga instructors, and classical musicians – can temporarily move to the UK to provide services.
• Significant liberalisation for services trade, which was previously constrained under multilateral frameworks like the WTO.
Chauhan pointed out that under the WTO regime, India was at a disadvantage compared to countries like China, which reaped extensive benefits from global trade agreements over the past three to four decades. "With a shift now towards bilateral FTAs, India is poised to leverage new opportunities," he added.
He also noted that India’s merchandise trade with the UK stands at $24 billion, largely in India’s favour, but commercial benefits were historically limited. “This FTA is a step toward correcting those past imbalances,” he concluded.
The India-UK FTA marks a new chapter in economic cooperation, offering significant gains for Indian workers, professionals, and industries as both nations strengthen their historic ties with renewed commercial engagement.