Jonathan Reynolds says the UK-India free trade agreement will deliver near-term gains while opening the way to greater investment, exports and jobs between the two economies.
Jonathan Reynolds has said the India-UK free trade agreement is designed to deliver quick gains for both countries while laying the groundwork for deeper economic ties over time, as London and New Delhi move to capitalise on one of the most ambitious trade deals either side has signed in years.
Speaking in New Delhi, the UK business and trade secretary said the agreement stands out for its breadth, covering both goods and services and offering what he described as practical benefits for businesses, workers and communities. He made the remarks during a visit that the UK government has billed as one of its largest trade missions to any partner country, bringing together three cabinet ministers, seven mayors and about 200 businesses.
The British government’s impact assessment says the accord could lift UK gross domestic product by 0.13%, or about £4.8 billion, in the long run, while India’s economy could gain 0.06%, or roughly £5.1 billion a year. The deal is also expected to reduce tariff and regulatory barriers, support small and medium-sized businesses, and preserve standards on issues including food safety and animal welfare.
For India, the agreement is expected to open duty-free access in sectors such as textiles, leather and processed foods, which are labour-intensive and politically significant. Reports in the Indian press have said the pact is intended to help push bilateral trade towards $120 billion by 2030, while also easing access for British exports ranging from whisky and cars to food products and electrical goods. Industry coverage has said the UK will cut tariffs on the vast majority of its goods sold in India, although sensitive areas remain protected on both sides.
Reynolds also pointed to the wider strategic value of the relationship, arguing that India’s economic rise is inseparable from its diplomatic weight. That framing fits with a broader shift in global trade policy, as governments seek new commercial partners while supply chains remain under pressure and protectionist sentiment persists in several major economies. For both countries, the challenge now is to convert the promise of the agreement into investment, exports and jobs.
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