Industry welcomes India-UK FTA, highlights tech and trade gains

India’s technology, telecom, and electronics industries have strongly endorsed the recently signed India–UK Free Trade Agreement (FTA), calling it a pivotal step towards deeper global integration and expanded market opportunities for Indian manufacturers and service providers. The FTA, formally known as the Comprehensive Economic and Trade Agreement (CETA), provides zero-duty access for 99% of India’s exports to the UK, unlocking fresh pathways for electronics, telecom equipment, IT services, and digital innovation.

Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), described the agreement as “ushering in a new era” for bilateral relations. He said the zero-duty access for smartphones, inverters, and optical fibre cables would significantly advance the government’s Make in India for the World initiative and complement India’s goal of reaching a USD 500 billion electronics manufacturing ecosystem.

He also highlighted the role of the India-UK Vision 2035 in fostering trusted partnerships for emerging technologies, such as Artificial Intelligence, semiconductors, and cybersecurity.

Echoing this sentiment, Mahendra Nahata, Managing Director of HFCL, said the FTA “enables us to accelerate international growth and contribute to building next-generation digital infrastructure” that will support the AI transformation in both countries. He underlined the role of robust telecom infrastructure in enabling future technologies.

Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, said the reduction of UK import duties—from as high as 14% to zero—on electrical machinery and components aligns with India’s Production Linked Incentive (PLI) goals. “It strengthens our integration into global value chains,” he added.

Digital Services and AI Start-ups Eye New Collaboration

The services sector has also expressed enthusiasm over enhanced digital mobility and easier licensing norms embedded in the FTA. CP Gurnani, Co-Founder and Vice Chairman of AIonOS, called the FTA “a bridge between two digital economies.” He noted that the pact will support the deployment of AI-powered solutions across borders and enable more inclusive transformation.

The deal includes measures for simplified visa processes, mutual recognition of professional qualifications, and a dedicated SME chapter to ease compliance and trade protocols, especially valuable for IT and telecom SMEs operating between the two markets.

Institutional Endorsement and Broader Impact

Industry veteran and Bharti Enterprises Chairman, Sunil Bharti Mittal, welcomed the FTA as a “modern, forward-looking partnership” that will stimulate innovation, investment, and ease of doing business. Speaking as Co-Chair of the India–UK CEO Forum, Mittal noted that businesses across sectors stand to benefit from the agreement’s provisions.

The Confederation of Indian Industry (CII) praised the FTA for its role in reducing trade barriers and enhancing joint ventures, especially in sectors like clean energy, life sciences, advanced manufacturing, and digital technologies. The reciprocal social security agreement—allowing Indian professionals to continue contributions to home-country pension schemes for up to three years—was flagged as a significant win for Indian service exporters.

Chandrajit Banerjee, Director General of CII, described the FTA as a “defining moment” in India-UK relations and a foundation for future-ready partnerships.

As reported by Voice&Data, the FTA offers specific advantages to India’s telecom and IT services industries, including streamlined access to the UK market, paperless trade provisions, and support for digital and spectrum-related services. The pact is also expected to support India’s vision of becoming a global hub for digital public infrastructure and AI-led growth.

The government has set a target to double bilateral trade with the UK from USD 56 billion to over USD 100 billion by 2030, with technology, telecom, and electronics expected to make significant contributions to this milestone.