India-UK FTA to unlock major opportunities for Karnataka, says British Deputy High Commissioner

Mangalore Today News Network

Mangaluru, Jul 25, 2026: Describing the India-UK Free Trade Agreement (FTA) as a "landmark, win-win partnership", British Deputy High Commissioner for Karnataka Chandru Iyer on Friday said the pact will open up unprecedented opportunities for Karnataka’s exporters, startups, industries, and educational institutions while significantly boosting bilateral trade between the two countries.

Addressing a press conference in Mangaluru, Iyer said the Comprehensive Economic and Trade Agreement (CETA) came into effect on July 15, marking a new chapter in India-UK economic relations.

Calling it one of the most comprehensive trade agreements signed by the two countries, he said the pact goes beyond traditional trade by including dedicated chapters on digital trade, sustainability, gender equality, and support for small and medium enterprises (SMEs).

"The agreement was finalised after 14 rounds of negotiations covering 30 chapters and moved from signing to implementation in less than a year. Businesses in both countries can immediately begin benefiting from its provisions," he said.

Iyer noted that bilateral trade between India and the UK had already increased from $43 billion to $48 billion even before the agreement came into force, reflecting growing confidence in the partnership. Over the long term, the FTA is expected to generate an additional $25 billion in bilateral trade and deliver substantial economic benefits to both countries.

A key feature of the agreement is the removal of trade barriers, with 99 per cent of Indian exports to the UK and 90 per cent of UK exports to India now eligible for zero or significantly reduced tariffs.

Highlighting Karnataka’s strategic importance, Iyer said the state is expected to be among the biggest beneficiaries of the agreement due to its strong presence in agriculture, seafood, healthcare, aerospace, information technology, and advanced manufacturing.

He said traditional products such as Mysuru sandal soap, Chikmagaluru coffee, Byadgi chillies, Channapatna toys, Mysuru silk, cashew nuts, and Dakshina Kannada seafood are expected to enjoy improved market access in the UK under the new trade framework.

"Karnataka has a unique blend of traditional industries and cutting-edge technology sectors. This agreement creates enormous opportunities for businesses across every segment," he said.

The Deputy High Commissioner also highlighted Karnataka’s growing role as a destination for British investment, noting that the state is the third-largest recipient of UK investments in India. Major British companies, including Tesco, Rolls-Royce, HSBC, London Stock Exchange Group, and NatWest, have established Global Capability Centres (GCCs) in the state.

He also pointed to strengthening people-to-people ties, revealing that weekly direct flights between Bengaluru and London have increased from seven to 34, significantly enhancing connectivity for business, tourism, and education.

Academic collaboration is also expanding, with institutions such as Imperial College London, the University of Liverpool, Lancaster University, and Birkbeck, University of London establishing research centres and campuses in Karnataka.

Iyer further highlighted the successful completion of the India-UK HealthTech Accelerator Programme, organised in partnership with the Manipal Academy of Higher Education (MAHE). Around 30 Indian HealthTech startups participated in the three-day programme, where UK experts mentored entrepreneurs on scaling their innovations globally.

Following the programme, six promising startups working in areas such as AI-driven healthcare, cancer detection, advanced diagnostics, and wearable medical technology will receive fully funded visits to the United Kingdom to explore business partnerships and investment opportunities.

To ensure that the benefits of the agreement reach grassroots entrepreneurs, the British Deputy High Commission is working with the Directorate General of Foreign Trade (DGFT) and the Karnataka government to translate trade-related information into Kannada and Tulu, helping farmers, exporters, and small businesses better understand export opportunities and tariff concessions.

Iyer also announced that Karnataka will soon receive its first official consignment of Scottish salmon under the new trade framework, calling it another milestone in the expanding India-UK trade partnership.

Concluding the interaction, he expressed confidence that the agreement would deepen economic cooperation while strengthening innovation, investment, education, and cultural ties, positioning Karnataka as a key driver of the next phase of India-UK collaboration.