The Free Trade Agreement (FTA) concluded with India places Britain at a “genuine” competitive advantage in advanced manufacturing sectors, UK Business and Trade Secretary Jonathan Reynolds told the House of Commons during a debate this week.Fielding questions on the scope and benefits of the deal — agreed last month — Reynolds described the FTA as a major economic win for the UK and “the best deal that India has ever offered”.“On advanced manufacturing… a set of advantageous positions has been agreed, putting this country at a genuine competitive advantage, particularly in relation to sectors such as automotive and machinery,” Reynolds said in response to British Sikh Labour MP Gurinder Singh Josan, as quoted PTI.“India is traditionally a very protectionist economy, and it is the world’s fastest growing big economy. Whether it is for goods or services… or the West Midlands as a whole, there is so much good stuff here to celebrate,” the minister added.The UK government estimates the deal could boost bilateral trade by GBP 25.5 billion annually in the long term. The Department for Business and Trade (DBT) projects a GDP increase of GBP 4.8 billion and wage growth of GBP 2.2 billion per year over the next decade.The debate in Parliament comes just ahead of UK-India Week, which begins next week as part of the India Global Forum (IGF) summit in London. Minister of Commerce and Industry Piyush Goyal is among the high-level speakers expected at the event.UK-India Week will also mark the launch of the 2025 edition of the ‘India Meets Britain Tracker’, an annual analysis by Grant Thornton and the Confederation of Indian Industry (CII) that maps investment flows from India to the UK.“Indian companies continue to play a pivotal role in the UK’s growth story — from job creation to innovation. This year’s tracker showcases their growing diversification, scale and resilience, and reflects the growing maturity and confidence of Indian enterprise on the global stage,” said Anuj Chande, Partner and Head of South Asia Business Group at Grant Thornton.“Indian businesses are no longer just investing abroad – they are transforming global economies,” said India Global Forum founder Manoj Ladwa.According to last year’s report, a record 971 Indian-owned companies were operating in the UK — a number that has continued to rise. With India and the UK now ranked as the fourth and sixth largest economies respectively, the FTA is being seen as a critical pillar in one of the world’s most strategic investment corridors.
