‘FTA opens market for MSMEs, enabling them to expand in UK’

Gautham R, Senior Manager, Global Air Freight and Head – Air Freight, India said, “India ranked as the UK’s 11th largest trading partner in the four quarters of 2024, contributing 2.4 per cent to the UK’s total trade. The top five traded products between the two nations included Oil, Clothing, Telecom & Sound Equipment, Pharmaceuticals and Iron & Steel (Ministry of Commerce). The recently introduced Free Trade Agreement (FTA) between India and the UK is poised to significantly benefit India’s MSME sector. With over 63 million enterprises employing well over 250 million people, Indian MSMEs contribute over 40% to the country’s total exports. The FTA opens up new market opportunities for these enterprises, enabling them to expand globally—particularly in the UK. To maximize this potential, MSME stakeholders must ensure that the pricing of Indian products—especially in competitive categories like Textiles—is sharp when compared to other exporting countries such as Bangladesh. Additionally, the FMCG sector in India stands to gain from reduced import tariffs on UK-origin products such as whiskey, gin, lamb, soft drinks, chocolates, and cookies, which will boost product diversity and market growth.
It is important to support MSMEs by connecting them with the right buyers, enabling access to new markets, and driving business growth. This strategic collaboration is set to create long-term win-win outcomes for all stakeholders involved which what WIZ plans.”