UK Parliament Launches Inquiry Into UK-India Free Trade Agreement: What You Need to Know

Sep 12, 2025

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The UK Parliament has launched a formal inquiry into the recently signed UK-India Free Trade Agreement (FTA). This move comes after Indian Prime Minister Narendra Modi’s visit to the UK in July 2025, during which the Comprehensive Economic and Trade Agreement was concluded. The inquiry aims to assess the potential benefits, risks, and broader impacts of the agreement on the UK economy.

Overview of the Inquiry

The House of Lords International Agreements Committee is leading the inquiry. The committee has invited evidence from experts, stakeholders, and the public to ensure a transparent and thorough evaluation of the FTA.

Feature	Details
Committee	House of Lords International Agreements Committee
Chairperson	Baroness Sandy Verma (British Indian Conservative Peer)
Objective	Examine the impact of the UK-India FTA on the UK economy, society, and environment
Public Participation	Written submissions accepted from individuals and organizations
Deadline for Submissions	October 14, 2025
Report Outcome	Findings and recommendations to be tabled in Parliament

Key Objectives of the UK-India FTA

The agreement aims to strengthen economic ties between the UK and India while boosting trade and investment. Some key objectives include:

Doubling Bilateral Trade: Targeting USD 120 billion by 2030
Increasing UK GDP: Estimated contribution of £4.8 billion annually in the long run
Enhancing Trade Opportunities: Across sectors like technology, pharmaceuticals, manufacturing, and services
Geopolitical Collaboration: Strengthening UK-India strategic partnership

Potential Benefits for the UK

Sector	Expected Impact
Technology & Innovation	Access to skilled workforce and tech collaboration opportunities
Pharmaceuticals & Healthcare	Increased exports of UK pharmaceutical products and medical services
Agriculture & Food	Easier trade in agricultural commodities with lower tariffs
Services Sector	Boost to financial, legal, and IT services through enhanced market access
Employment	Job creation in export-driven sectors

Potential Risks & Challenges

Challenge	Details
Trade Imbalances	Risk of increased imports exceeding exports in some sectors
Regulatory Alignment	Differences in standards and regulations may require harmonization
Domestic Industry Impact	Certain industries may face competition from cheaper imports
Environmental Concerns	Increased trade could impact sustainability if not properly regulated

Inquiry Process

The committee will gather evidence through:

Written Submissions: Experts, businesses, and citizens can submit their views by October 14, 2025
Oral Hearings: Selected stakeholders may be invited to present testimony in person
Data Analysis: Economic and sectoral impact assessments conducted by committee staff
Final Report: Recommendations presented to Parliament for ratification considerations

FAQs

Q1: What is the UK-India Free Trade Agreement?
A1: It is a comprehensive economic agreement aimed at enhancing trade and investment between the UK and India, reducing tariffs, and improving market access for businesses in both countries.

Q2: Why is the UK Parliament conducting an inquiry?
A2: To assess potential benefits, risks, and broader economic, social, and environmental impacts of the FTA, ensuring transparency and informed policymaking.

Q3: Who can participate in the inquiry?
A3: Experts, industry stakeholders, and the public can submit written evidence. Selected participants may also provide oral testimony.

Q4: What is the deadline for submissions?
A4: Written submissions must be submitted by October 14, 2025.

Q5: How will the findings be used?
A5: The committee will publish a report summarizing its findings and recommendations, which will be tabled in Parliament as part of the ratification process for the FTA.

Conclusion

The UK Parliament’s inquiry into the UK-India Free Trade Agreement highlights the importance of transparent evaluation in international trade deals. With potential economic growth, enhanced bilateral trade, and strategic geopolitical benefits, the FTA could be a landmark agreement. However, the inquiry ensures that risks are carefully assessed, enabling informed decisions for sustainable growth.

This initiative reflects the UK’s commitment to robust scrutiny and strategic planning in global trade agreements, while reinforcing the significance of the UK-India economic partnership.