Modi Hails India-UK Pact: Big Gains for Textile, Jewellery Sectors; Relief in Healthcare
In a significant step toward strengthening bilateral economic ties, Prime Minister Narendra Modi has announced that the much-anticipated India-UK free trade agreement (FTA) will bring substantial benefits to Indian industries—particularly in the textile, gems and jewellery sectors. Additionally, the deal is expected to make medical devices more affordable, marking a win for Indian consumers and healthcare providers alike.
The announcement has generated optimism across business communities, as the agreement signals a new era in India-UK relations. As the two nations deepen their economic engagement, the deal could pave the way for more investments, increased exports, and stronger global competitiveness for Indian industries.
Textile Industry to Spin New Growth
One of the standout winners in this trade pact is India’s vast textile sector, which employs millions and contributes significantly to the country’s GDP and exports. The removal or reduction of tariffs will give Indian textile manufacturers easier access to the UK market, which has traditionally been a high-value destination for premium Indian fabrics, garments, and handcrafted textiles.
With tariffs expected to be slashed or eliminated on several Indian textile products, Indian exporters anticipate a sharp rise in demand from British retailers and consumers. Small and medium-sized enterprises (SMEs) in the sector are particularly excited about the opportunity to scale up operations and tap into a market that values both affordability and craftsmanship.
PM Modi emphasized the potential of the textile sector to create jobs, especially in semi-urban and rural areas. “This deal will not only open doors to new markets but also provide the much-needed push to artisans and weavers who form the backbone of our textile legacy,” he said during the announcement.
A Shine on Gems and Jewellery Exports
Another sector set to sparkle is gems and jewellery—one of India's largest foreign exchange earners. The UK has long been a key market for Indian diamonds, gold ornaments, and other jewellery items. With the trade deal, duties on these luxury exports are expected to drop significantly, making Indian products more price-competitive in the UK.
The Gems and Jewellery Export Promotion Council (GJEPC) welcomed the deal, noting that it would likely result in increased orders from British wholesalers, retailers, and high-street chains. Indian jewellers, many of whom are already international players, see this as an opportunity to expand their footprint in the European market post-Brexit.
Modi highlighted the strength of India's craftsmanship, saying, “From Jaipur’s emeralds to Surat’s diamonds, our jewellers now have greater access to global connoisseurs of beauty and precision.”
Relief for the Medical Sector: Devices to Get Cheaper
Perhaps one of the most direct benefits to the average Indian citizen will be the reduced cost of imported medical devices. India heavily relies on imports for critical diagnostic and surgical equipment. With this agreement, high-end medical technology—from MRI scanners to pacemakers—could see a drop in prices due to relaxed duties and simplified import regulations.
This development is expected to lower treatment costs in private hospitals and diagnostic centers, improving healthcare access across socioeconomic groups. Medical professionals have hailed this as a vital move in the direction of modernizing India’s healthcare infrastructure and expanding quality care to more people.
The Prime Minister underlined the long-term societal impact of this clause, stating, “Affordable healthcare is a right, not a luxury. By reducing costs of medical devices, we ensure that advanced treatment becomes reachable for every Indian family.”
Boosting Trade Volumes and Investments
The India-UK trade agreement is expected to push bilateral trade beyond the $100 billion mark over the next decade. It includes provisions to ease customs regulations, promote digital trade, support innovation, and provide protection for intellectual property.
This comprehensive pact covers a broad range of sectors including food processing, IT services, pharmaceuticals, automotive components, education, and fintech. The agreement also lays down a framework for enhancing investments and reducing bureaucratic hurdles, which both governments hope will accelerate business flows.
Additionally, the UK has agreed to ease visa regulations for Indian professionals, particularly in sectors like IT, healthcare, and finance. This move is seen as a reciprocal gesture, enhancing mobility and opening new career opportunities for skilled Indian workers.
A Post-Brexit Pivot for the UK
For the United Kingdom, this deal is a strategic post-Brexit maneuver to forge deeper trade ties with fast-growing economies like India. With its departure from the European Union, the UK has been looking to redefine its trade dynamics, and India—with its burgeoning middle class and fast-expanding economy—offers a promising partner.
British companies are especially keen on entering India’s consumer markets, digital infrastructure projects, and green energy sector. In return, Indian firms will gain improved access to British capital markets and research institutions.
The deal is also likely to enhance cooperation in sustainable development, climate action, and innovation—areas both countries have publicly committed to prioritizing.
Reactions from Industry and Policy Circles
Reactions from Indian industry leaders have been overwhelmingly positive. The Confederation of Indian Industry (CII) called it a “landmark moment” and urged Indian exporters to quickly adapt to the new frameworks to maximize benefits. The Federation of Indian Chambers of Commerce & Industry (FICCI) said the deal represents “a new chapter of collaboration between two great democracies.”
Trade economists, however, advise caution. While the agreement promises many benefits, its actual success will depend on timely implementation and how effectively stakeholders on both sides are able to adjust to the new regime. Concerns have also been raised over compliance burdens for smaller exporters and the need for upskilling to meet UK regulatory standards.
Political and Strategic Implications
On a geopolitical level, this trade deal solidifies India’s position as a key global player and partner to Western economies. It also signals India’s growing ability to negotiate from a position of strength, balancing traditional partnerships with new opportunities in an evolving multipolar world.
The agreement comes at a time when global trade faces disruptions due to geopolitical tensions, and nations are rethinking supply chain dependencies. In this context, the India-UK deal is not just a commercial arrangement, but also a strategic realignment reflecting trust, shared values, and mutual economic ambition.
The India-UK trade agreement, as detailed by Prime Minister Modi, marks a pivotal moment in the trajectory of India’s global trade relations. With substantial benefits lined up for key sectors such as textiles and gems and jewellery, and a direct impact on healthcare costs through cheaper medical devices, the pact has the potential to reshape bilateral trade dynamics.
As businesses gear up to leverage new opportunities and consumers look forward to better access and affordability, the deal represents a step toward a more integrated, resilient, and mutually beneficial India-UK economic partnership.