The FTA goes live today. Our India MD, Jai Mallick, gives us his insights …
The UK-India Free Trade Agreement (FTA), which comes into force today, should change the way British companies – and particularly tech firms – approach India.
Rather than viewing the country simply as an export market, UK firms should be looking to build long-term partnerships with Indian businesses through joint R&D, innovation collaborations, shared IP and investment.
The UK-India Technology Security Initiative, signed in 2024, signalled both governments' intent to increase collaboration in areas such as AI, semiconductors, advanced materials and biotechnology. The FTA now provides many of the practical mechanisms to help businesses make the most of this and turn ambitions into commercial partnerships.
For India, the FTA unlocks greater access to world class UK innovation, services and capital. For the UK, it opens doors to a scale of demand that simply doesn’t exist at home.
And the timing is opportune. India is now the world's fourth-largest economy and is investing heavily in AI, advanced manufacturing, biotech, batteries and cleantech.
To support this growth, Indian companies are increasingly looking beyond traditional supplier relationships to partnerships that give them access to world-leading innovation and specialist expertise.
What stands out about the FTA is that it has been designed based on dialogue with industry. Tariff reductions are important, but so are provisions on services, digital trade and IP. Together, these measures create a corridor through which ambitious companies on both sides can scale regionally and globally, not simply sell more into each other’s markets.
The FTA removes many of the practical barriers that have traditionally made it difficult for UK firms to do business in India. It gives commitments on digital trade support, electronic contracts and paperless trading, for instance, and sets out more predictable rules for digital commerce. Other provisions tackle professional mobility, making it easier for UK companies to deploy engineers and other specialists in India.
Together, the measures make it significantly easier to establish and develop commercial partnerships.
These changes reduce much of the friction involved in building business relationships. For innovative UK companies, India is now a much more accessible market.
And perhaps the most exciting aspect is what it offers to technology companies. When combined with existing government initiatives on semiconductors, AI and telecoms, the agreement creates a framework through which UK and Indian tech firms can co-develop products, share IP on sensible terms and bring innovations to market faster.
But while the agreement makes doing business in India easier, success still depends on your market entry strategy and understanding of the Indian commercial landscape.
Companies need to identify the right opportunities, navigate a complex market and build relationships with the right partners. And this is where experienced, on-the-ground support is invaluable.
Ultimately, the FTA represents a decisive shift in how India should be viewed by UK companies.
If India isn't already part of your international growth strategy, now’s the time to reconsider.
If you’d like to discuss the opportunities the FTA unlocks for your business, get in touch with us at contact@intralinkgroup.com.