NEW DELHI: The India-UK FTA is the most “economically significant” FTA for Britain and will boost its GDP more than other post-Brexit FTAs with Australia and New Zealand, and the 12-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to a House of Commons Library research briefing on June 26.
“UK GDP is expected to rise by 0.13% (£4.8 billion) in the long term as a result of the agreement. “This is a larger boost to GDP than other post-Brexit FTAs that were negotiated from scratch (Australia, New Zealand and the Trans-Pacific Partnership),” the briefing said, citing data from an impact assessment conducted by the UK Department of Business and Trade (DBT). House of Commons Library research briefs provide impartial, fact-checked analysis to help lawmakers make informed decisions. CPTPP members are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam.
According to the impact analysis conducted by the UK government, India’s GDP would in turn receive a boost of 0.06%, equivalent to £5.1 billion per year in the long term. He added that by 2035, the UK is expected to become the sixth largest economy in the world, and India is expected to become the third largest.
The research briefing stressed the need for effective implementation of the provisions of the agreement as the India-UK Comprehensive Economic and Trade Agreement (CETA) is scheduled to take effect from July 15.
Officials from both sides are engaged in refining operational issues, preparing processes and finalizing necessary documentation so that companies from both sides can take full advantage of CETA from day one, people familiar with the development said, requesting anonymity.
Union Commerce Minister Piyush Goyal, who was in the UK last week to oversee the implementation of CETA, announced in London on June 26 that about 1,000 people will be deployed across India as advisors to help companies maximize the benefits of the deal. The UK Government has also launched an awareness program to ensure that UK businesses are fully equipped to take advantage of CETA. DBT’s outreach activity has already engaged more than 7,000 companies and their representative bodies in CETA, the people cited above said.
The research conference said British business organizations broadly support the agreement. He added, “The National Farmers Union welcomed some aspects of the agreement, but criticized other aspects. It expressed its pleasure at the increased opportunities for exporting lamb, but raised concerns about the dairy sector.” India considers the dairy sector a sensitive sector, and has isolated it from most trade deals.
The UK government described the agreement as “the best deal any country has ever agreed with India” and said it would help boost the economy, the briefing said. “The government stressed the importance of India to the United Kingdom,” she added. There is a strong ‘living bridge’ with the approximately two million people of Indian origin living in the UK. She added that India’s economy is already the fifth largest economy in the world, and is expected to be the third largest by 2028.
Citing the UK government, the report said the deal provides certainty for businesses, which will encourage investment and give British companies access to a greater pool of talent. She added that nothing in the deal is expected to have a long-term impact on net migration.
The report said that there is no chapter on investment in the free trade agreement. “There have been negotiations on a bilateral investment treaty between India and the UK. In November 2025, Trade Minister Sir Chris Bryant said these negotiations are not over yet,” she added.
The two countries are expected to negotiate a bilateral investment treaty after the activation of the CETA, the above-mentioned people said.
