Prime Minister Narendra Modi and his British counterpart Keir Starmer signed the eagerly-anticipated Free Trade Agreement (FTA) on Thursday, marking a significant milestone in the trade and economic relations between India and the UK.

As part of the historic pact, the UK will lower duties on 99 per cent of Indian exports, and India will lower tariffs on 90 per cent of UK goods, drastically reducing tariff lines and sector-specific regulatory procedures.

The agreement is expected to lower the cost of imported goods for Indian consumers, including luxury cars, cosmetics, medical devices, gin, and Scotch whisky. In the next two years, it is anticipated that India's leather industry will increase its market share in the UK by 5 per cent.

Organised by the Confederation of Indian Industry (CII), 16 key business leaders from the Indian industry, led by Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises and Co-Chair of the India-UK CEO Forum, were part of PM Modi's delegation.

The Industry leaders welcomed the trade pact between the two nations, terming the deal historic and a game-changer for both nations.

“Indian industry across all sectors welcomes the India-UK FTA with great optimism. This agreement establishes a modern, forward-looking partnership that will stimulate innovation, ease market access, and foster investment," said Mittal.

Businesses in India as well as the UK stand to gain tremendously, as it lays the groundwork for scaling up bilateral cooperation across key growth sectors, he added.

Dr. Anish Shah, Group CEO and MD, Mahindra Group, believes that the landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape and It is a testament to the growing stature of India as a trusted partner and innovation powerhouse in the global order.

"It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration," Shah said.

Kirit Bhansali, Chairman, Gem and Jewellery Export Promotion Council, said that this landmark accord unlocks exciting new opportunities for the gem and jewellery sector.

"Currently, exports to the UK stand at $941 million; with the duty concessions in place, this figure is poised to surge to $2.5 billion within the next three years, elevating overall bilateral trade in our sector to an estimated $7 billion," said Bhansali.