The Free Trade Agreement (FTA) between India and the United Kingdom comes into force on Wednesday, providing Indian manufacturers with preferential access to the world’s sixth-largest economy and offering one of the country’s biggest export opportunities in recent years.Commerce Secretary Rajesh Agarwal said on Tuesday that the CETA was India’s “most aspirational” trade deal to date and established a future-focused economic framework between two major nations.Indian sectors to gainWith the trade pact coming into force on Wednesday, several Indian industries, including textiles, leather, jewellery and gems, automobile parts and engines, furniture, sports goods, chemicals and machinery, are expected to benefit from the FTA.Until now, goods in these sectors were subject to UK tariffs ranging from 4% to 16%.The removal of the UK’s 8 per cent to 12 per cent duties on clothing and home textiles will make Indian products more competitive with those from Bangladesh, Vietnam and Pakistan. Indian exports in this segment are expected to rise by as much as 40% over the next three years.Indian MSME exporters and manufacturers of luxury products are also set to benefit from zero tariffs on gold and diamond jewellery, as well as leather goods.The UK will also reduce tariffs on Indian processed foods, tea, shrimp, spices and basmati rice, boosting exports from West Bengal, Kerala, Assam and Gujarat.In addition, tariffs on plastics, industrial chemicals and agrochemicals will be eliminated. India’s chemical exports to the UK could quadruple by 2030.Under a quota system, Indian manufacturers of electric and hybrid vehicles will also gain preferential access to the UK market.Meanwhile, India’s steel industry also stands to benefit. India has secured a quota of around USD 350 million under the FTA, significantly higher than its average steel exports to the UK of about USD 200 million. By FY2027, this could help India’s steel exports to the UK reach USD 1 billion.The trade pact also provides relief to Indian employers and professionals through the Double Contribution Convention (DCC).Under the provision, Indians working temporarily in the UK for up to five years will not be required to pay UK National Insurance contributions.According to India’s Commerce Ministry, more than 75,000 Indian workers and around 900 companies are expected to benefit from the provision. It is projected to generate annual savings of more than USD 600 million for industry while significantly improving the competitiveness of Indian businesses operating in the UK.