India’s proposed free trade agreement (FTA) with the United Kingdom is expected to come into force by 1st May, while a similar agreement with the European Union could be finalised by the end of the year, according to industry representatives.
Speaking after a business leaders’ meeting in Coimbatore attended by Union Commerce and Industry Minister Piyush Goyal, Ravi Sam, Vice Chairman of Texprocil, indicated that both agreements are progressing towards implementation within the stated timelines.
Sam stated that ministerial assurances suggest the UK agreement is likely to take effect around early May, while the European pact could conclude later this year. He added that the twin agreements are expected to significantly expand market access for Indian exporters across sectors, including textiles.
He further noted that the textile industry, in particular, stands to benefit from reduced tariff barriers, which have historically constrained exports to Western markets. Sam observed that Indian exporters have faced prolonged challenges due to high tariffs and anti-dumping duties in both the UK and European markets, limiting competitiveness over the past two decades.
The FTAs are expected to provide relief to manufacturers navigating global trade uncertainties, while unlocking substantial opportunities across multiple industries beyond textiles. He expressed optimism that improved trade terms would help reverse the loss of market share in these regions and create a more favourable export environment.
Sam also highlighted the importance of supportive policy coordination, adding that industry stakeholders are hopeful of proactive collaboration between state and central governments to maximise the benefits of these agreements. He described Coimbatore as a rapidly growing Tier-II economic hub with strong industrial potential and a conducive business environment.
Addressing the gathering, Goyal stated that India is actively negotiating trade agreements with around 20 additional countries and regions as part of its broader trade strategy. These efforts build on nine FTAs concluded over the past three and a half years, which have already enabled preferential market access to 38 developed nations.
The minister added that ongoing discussions include regions such as the Gulf Cooperation Council, Eurasia, and Israel. He emphasised that India’s FTA strategy is focused on developed markets with strong purchasing power, where domestic industries are less likely to face direct competition, thereby supporting export growth without undermining local businesses.
Goyal further noted that nearly two-thirds of global trade is now accessible to Indian businesses through existing and proposed agreements, presenting significant opportunities for expansion. He also commended Coimbatore’s entrepreneurial ecosystem, particularly its MSME sector, for playing a key role in shaping policy direction.
