By Global Consultants Review Team
A newly signed Free Trade Agreement (FTA) between India and the United Kingdom is generating widespread excitement in Punjab, particularly in Ludhiana, the state’s manufacturing hub. The landmark deal eliminates tariffs on nearly all Indian exports to the UK, opening new doors for local industries.
The agreement is projected to double bilateral trade to USD 120 billion by 2030. Punjab’s key sectors - including textiles, auto parts, and gems and jewellery, are preparing to expand operations and tap into the UK market. Amit Jain, head of the Confederation of Indian Industry (CII) in Punjab, described the FTA as a ‘game-changer,’ noting that Ludhiana’s textile industry stands to benefit greatly from duty-free access.
In Ludhiana, home to numerous small and medium-sized factories, business owners are enthusiastic about the possibilities. The FTA is expected to generate thousands of new jobs, particularly in the textile and jewellery sectors. The gem and jewellery industry, in particular, anticipates a sharp rise in UK exports, from USD 400 million to USD 1 billion annually within two years, thanks to reduced tariffs.
Union Commerce Minister Piyush Goyal highlighted the broader impact of the deal, stating it will create three times more jobs by expanding trade in both goods and services. He also emphasized its role in advancing India’s vision of becoming a developed economy by 2047.
However, the agreement is still awaiting ratification by the UK Parliament, a process that may take up to a year. In the meantime, industry leaders urge businesses to collaborate more closely and form cooperative groups to maximize access to government incentives and support programs.
Despite some challenges, the mood in Punjab remains upbeat. For Ludhiana’s manufacturers, the India-UK FTA is a significant opportunity to enhance global competitiveness, drive regional growth, and create meaningful employment.
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