India needs to strengthen certification, standards, logistics, buyer networks to fully leverage India-UK FTA: GTRI
The Global Trade Research Initiative (GTRI) has said that the India's free trade agreement (FTA) with the UK offers significant market access, but translating those opportunities into higher exports will require improvements in standards, certification, logistics and stronger buyer connections. It said ‘without parallel work on standards, certification, logistics, regulatory approvals and buyer networks, much of the opportunity will remain on paper. The agreement opens the door; India must now convert access into exports.’ The India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July last year, is scheduled to come into force on July 15.
According to the think tank, the strongest export opportunities under the pact lie in labour-intensive products, processed foods, seafood, automobiles and select manufacturing segments. In contrast, sectors such as steel, petroleum and alcohol are unlikely to witness substantial gains. The UK imported goods worth $928.9 billion from across the world in 2025, but imports from India stood at only $15.2 billion, giving India a market share of just 1.6 per cent. The UK accounted for only 3.4 per cent of India's global merchandise exports of $445 billion. It noted that export potential depends on four factors - UK demand, India's export capacity, its current UK market presence and the tariff advantage created by CETA. It said sectors where Indian strength meets UK demand include garments; textiles; leather and footwear; processed foods; cereals, vegetables, fruits and spices; fish, and meat; automobiles, motorcycles and parts; and machinery, electronics and fabricated metal products.
GTRI further stated that India exported garments worth $16.3 billion globally in 2025, while the UK imported garments worth $21.3 billion. India supplied $1.3 billion, accounting for 6.1 per cent of the UK's garment imports, with the UK already purchasing around 8 per cent of India's global garment exports, indicating well-established trade relationships. In processed foods, the UK imported products worth $33.4 billion last year, but sourced only $354 million from India, giving Indian exporters a market share of just 1.1 per cent. Similarly, the automobile sector also presents significant opportunities, with the UK importing automotive products worth $92.2 billion in 2025, while imports from India were only $325 million, representing a marginal 0.4 per cent share.
