London, May 6 (PTI) Business leaders and industry groups working across the India-UK corridor are on Tuesday rejoicing over the "historic" Free Trade Agreement, announced by Prime Ministers Narendra Modi and Keir Starmer as a “landmark” milestone in the bilateral partnership that is expected to boost jobs and growth for both economies.

India Global Forum (IGF), the UK-based policy platform working on closer bilateral collaborations, dubbed the deal at the end of three years of protracted negotiations as a “significant milestone” for India-UK relations.

"The UK-India Free Trade Agreement is more than a document; it's a starting point for a deeper, more strategic partnership,” said IGF Founder and Chairman Manoj Ladwa.

Lord Karan Bilimoria, Chair of the International Chamber of Commerce (ICC) UK, said he was “over the moon” that the deal has been done because it will be a catalyst to turbocharge investments, doubling trade to over 80 billions pounds within five years.

“This is the biggest and most important Free Trade Agreement that the UK has signed since Brexit. India is the fastest growing major economy in the world, and the fourth largest economy in the world and yet is only Britain’s 11th largest trade partner,” said Bilimoria.

The Confederation of Indian Industry (CII) described the FTA as a “transformative accord” which reflects a shared commitment to deepening economic ties, bolstering technology collaboration, diversifying global supply chains and fostering a more business-friendly environment.

“Guided by the 2030 Roadmap, the timely agreement will help advance a comprehensive strategic partnership between India and the UK, steering bilateral trade towards the ambitious target of USD 100 billion by 2030,” said CII President Sanjiv Puri.

“The timing couldn’t be better, with the FTA enhancing the economic resilience of both the UK and India by providing access to new markets and reducing vulnerability to external shocks. This is particularly important in a world where trade tensions are on the rise,” added Keshav Murugesh, Chair of CII’s UK India Business Forum.

The UK-India Business Council (UKIBC) said the deal promises to reduce barriers to trade and investment, promote sustainability and innovation, and encourage closer cooperation across sectors – from technology, manufacturing and services to education and healthcare.

“This agreement will unlock new opportunities for businesses across both countries, drive economic growth, create jobs, and support innovation and collaboration across sectors,” said UKIBC Chair Richard Heald.

The City of London Corporation, representing the financial hub of the UK capital, said the FTA marked a significant step forward in the historic and evolving partnership of London with one of the world’s most influential economies.

“This agreement will open up new doors for collaboration in innovation, green finance, and professional services — areas where the City of London is a global leader. Together, we can unlock opportunities that drive sustainable growth, create skilled jobs, and deliver shared prosperity for both our nations,” said Lord Mayor of London Alastair King.

Earlier, Modi and Starmer spoke to mark the conclusion of FTA negotiations, which restarted in February after an election pause last year. The deal is expected to be formally signed off during a visit by the British Prime Minister to India in the coming weeks.

Officials described the FTA with the UK as India’s most comprehensive with 26 chapters, going beyond traditional areas negotiated in past FTAs to include many new areas such as gender rights, innovation and small and medium enterprises (SMEs) with the aim of deeper integration of both economies.

The deal will give Indian businesses more competitive market access in focus sectors like textiles, leather, footwear, sports goods and toys, gems and jewellery as well as market access in manufacturing sectors like engineering goods, auto parts and engines to enhance bilateral investment flows and technology sharing.

According to the UK’s Department for Business and Trade (DBT), the FTA is expected to add an extra GBP 25.5 billion annually in the long run to the current two-way trade of GBP 41 billion. It has highlighted a cut in Scotch whisky tariffs, from 150 per cent down to half and then eventually even lower to 40 per cent, and automotive quotas among the big wins for British business.

Officials have dubbed the agreement a “win-win” for both eonomies, offering Indian consumers quality goods at competitive prices, boosting domestic consumption and growth while offering UK businesses access to India’s enormous demand-driven and emerging market in support of the UK government’s growth agenda. PTI AK ZH ZH