During a press conference, Minister Goyal emphasized that the agreement was negotiated on “India’s terms,” reflecting a “zero compromise” approach on areas deemed vital for national interests. The protection of dairy is particularly significant given the sector’s vast network of smallholder farmers and its critical role in rural livelihoods across the country. This strategic exclusion reflects India’s deep understanding of its dairy economics.

The newly inked FTA is poised to significantly boost exports of several labour-intensive Indian products. Sectors such as footwear, textiles, and gems and jewellery are expected to gain substantial advantages through enhanced market access and duty reductions in the UK. This strategic focus aims to spur large-scale employment generation and empower artisans, women-led enterprises, and MSMEs within India.

Beyond protecting sensitive areas, the agreement also features broader economic benefits. It will open doors for India to the developed world, with 99% of India’s exports gaining preferential market access and duty-free entry into the UK. This comprehensive pact includes provisions for a Double Contribution Convention, which will significantly benefit Indian professionals working in the UK by addressing social security contributions, thereby enhancing their take-home pay.