Asia is expected to benefit from standout growth from India and a new generation of fast-growing emerging markets; Asia’s centre of growth is expected to shift from China to India…
This is the conclusion of the UK’s ‘Global Trade Outlook 2025’ released last week, which also highlights that the Indian economy is heading towards becoming the third largest in the world by 2028. This is framed against the backdrop of the recently concluded UK-India Free Trade Agreement (FTA) negotiations, details of which emerged at the India Global Forum (IGF) in London last month.
The outlook notes: “For example, the UK-India FTA is a landmark trade deal that will drive growth and boost trade with one of the fastest-growing economies in the world. As soon as the deal comes into force, UK products will benefit from a saving of up to an estimated £400 million a year, from India cutting its tariffs on existing trade alone, which could increase to around £900 million a year after staging over 10 years.
“And that’s before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors.”
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An accompanying trade strategy, released to complement an Industrial Strategy released earlier, is aimed at setting a clear direction for the government's growth and job creation goals.
“What works for business, works for Britain. It means more jobs, more opportunities, and more money in people’s pockets. That’s why I’ve backed British industry through global headwinds – securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country,” said UK Prime Minister Keir Starmer.
“Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy,” stated Business and Trade Secretary Jonathan Reynolds.
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The strategy reiterates the “huge economic win” from the India FTA, which “slashes Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90 per cent of tariff lines for UK exports to unleash opportunities for businesses across our regions and nations”.
The FTA is set to be signed this month following legal scrubbing and UK Parliament approvals.
*Info: Global Trade Outlook 2025
