It will be quicker, cheaper and easier for British companies to trade with India as a result of the bilateral Free Trade Agreement (FTA) struck earlier this month, the UK government said on Wednesday.
Business and Trade Secretary Jonathan Reynolds described the FTA as the best deal India has ever agreed to as he convened a revamped advisory board for its first meeting, tasked with boosting exports to grow the UK economy.
The Board of Trade, made up of UK business experts, is charged with delivering targeted support for small businesses across the country and helping firms utilise the exporting opportunities from the UK's recent FTAs with the India pact followed by a US deal.
Today marks the beginning of a new chapter for British trade. This Board isn't just a talking shop it's a hands-on, dynamic force that will help businesses of every size access global markets and seize the opportunities created by our landmark trade deals, said Reynolds, who concluded the UK-India FTA negotiations during Commerce and Industry Minister Piyush Goyal's visit to London earlier this month.
We've already secured the best deal India has ever agreed to, and our US agreement has slashed tariffs for our steel and automotive sectors, protecting hundreds of thousands of British jobs, he said.
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The Department for Business and Trade (DBT) said its India trade deal is expected to be a shot in the arm for the UK's exports of whiskies and gin, cosmetics, medical devices, advanced machinery and lamb and is expected to increase bilateral trade by an estimated GBP 25.5 billion a year in the long term.
Trading with India will be quicker, cheaper, and easier thanks to improved customs processes and by promoting digital systems, which will be particularly important for SMEs (small and medium enterprises) who may have otherwise been unable to break into the Indian market, DBT said.
The UK-India FTA has been dubbed a landmark trade deal, worth GBP 4.8 billion annually to the UK economy by 2040 as a result of slashed tariffs across the board.
The UK-India Free Trade Agreement is a significant achievement that will create new opportunities for UK and Indian businesses, enable greater access to one of the world's largest and most dynamic markets, and drive growth and innovation across the UK-India corridor, said Bill Winters, Group Chief Executive of Standard Chartered and Co-Chair of the UK-India Financial Partnership.
The UK exported nearly GBP 300 million worth of food and drink to India in 2024, so this FTA represents a significant opportunity for British food and soft drinks, said Karen Betts, Chief Executive of the UK's Food and Drink Federation.
The FTA will also provide UK manufacturers with greater access to ingredients produced in India, strengthening the supply chain resilience and competitiveness for our sector, she said.
According to DBT, Wednesday's first meeting of the Board of Trade comes as part of a wider series of measures to boost the number of high-growth SMEs across the UK.
The high-profile group, made up of popular entrepreneur Mike Soutar, BT Group Chief Executive Allison Kirkby and Small Business Britain founder Michelle Ovens as ambassadors and advocates for British businesses, set about to unpick the breakthroughs with both India and the United States.
It is encouraging to see new deals struck in recent weeks and a real boost to energy and ambition. Almost all businesses in the UK are small businesses, and they have a major impact on the economy, employing millions and creating and supporting communities, said Ovens.
The board will advise on the delivery of the government's forthcoming Trade Strategy' and Small Business Strategy', to ensure both align with the economic growth agenda to raise living standards across all parts of the UK.
It also comes close on the heels of the US trade deal with President Donald Trump, which the Prime Minister Keir Starmer led government says will protect jobs in the automotive, steel, aluminium, pharmaceutical and aerospace sectors employing over 320,000 people across the UK.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Negotiations for a proposed trade pact between India and the 27-nation European Union are progressing at a faster pace and both the sides are looking at concluding the talks for an early harvest trade agreement by July this year, a government official said on Wednesday.
The early harvest or an interim trade agreement would include issues such as intellectual property rights (IPRs), government procurement, tariff, and non-tariff barriers, the official said.
An Indian official team from the commerce ministry is visiting Brussels this week for the next round of negotiations on the trade agreement with the European Union (EU). This visit comes in the backdrop of recently-concluded eleventh round of talks between chief negotiators of both the sides on May 16 here in the national capital.
"We are looking for an early harvest. We are trying to do it as early as possible...targeting by July for early harvest," the official added.
The two sides have agreed to conclude the agreement in two phases on account of the uncertain global trade environment, particularly due to the US tariff actions under President Donald Trump.
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India has followed the practice of negotiating trade pacts in two phases with Australia.
The early harvest pact would lead to a full fledged free trade agreement.
Besides demanding significant duty cuts in automobiles and medical devices, the EU wants tax reduction in products like wines, spirits, meat, poultry and a strong intellectual property regime.
Indian goods' exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, can become more competitive if the pact gets concluded successfully.
In June 2022, India and the 27-nation EU bloc resumed negotiations for a comprehensive free trade agreement, an investment protection agreement and a pact on geographical indications (GIs) after a gap of over eight years.
It stalled in 2013 due to differences over the level of opening up of the markets.
On February 28, Prime Minister Narendra Modi and the European Commission President agreed to seal a much-awaited free trade deal by the end of this year.
The India-EU trade pact negotiations cover 23 policy areas or chapters, including Trade in Goods, Trade in Services, Investment, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies, Rules of Origin, Customs and Trade Facilitation, Competition, Trade Defence, Government Procurement, Dispute Settlement, Intellectual Property Rights, Geographical Indications, and Sustainable Development.
India's bilateral trade in goods with the EU was $137.41 billion in 2023-24 (exports worth $75.92 billion and imports worth $61.48 billion), making it the largest trading partner for goods.
The EU market accounts for about 17 per cent of India's total exports, while EU's exports to India make up 9 per cent of its total overseas shipments.
In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at $51.45 billion.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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Pradhan Mantri Suraksha Bima Yojana (PMSBY) marks a significant milestone in India’s journey toward universal social security. Launched in May 2015 and designed as an affordable and accessible personal accident insurance scheme, PMSBY targeted economically vulnerable citizens, particularly those in rural and unorganised sectors. With a nominal annual premium of ？20, the scheme offers ？2 lakh insurance coverage for accidental death or full disability, and ？1 lakh for partial disability. Over the past decade, PMSBY has evolved from a government initiative to a symbol of inclusive insurance outreach.
PMSBY was conceived as part of the government’s broader strategy to strengthen the social security framework in India. It followed the successful rollout of the Pradhan Mantri Jan Dhan Yojana (PMJDY), which brought millions of underbanked Indians into the formal banking system. The linkage between Jan Dhan accounts and PMSBY facilitated seamless enrolment through auto-debit, making it especially easy for low-income individuals to subscribe with ease. Together, these schemes have become pillars of India’s insurance inclusion strategy, ensuring that the economically weaker sections are not left vulnerable in times of need.
In the last ten years, the scheme has crossed 44 crore enrolments and has settled over 135,000 claims, disbursing more than ？2,700 crore in FY 2024–25 alone. These figures highlight the scale and impact of the initiative in embedding insurance awareness across the nation.
The National Insurance Company (NIC) has played a key role in implementing this scheme. Covering over 170.4 million individuals across states which is nearly 38 per cent of the total enrolment, NIC has worked with commitment and compassion to ensure the scheme reaches its intended beneficiaries. Over the decade, NIC has honoured nearly 55,000 claims, i.e. 40 per cent of the total claims, amounting to ？1,000 crore, reinforcing its dedication to serving the underprivileged with empathy and efficiency.
Through PMSBY, financial institutions have had the opportunity to directly engage with the lives of those often left out of mainstream insurance services. These interactions have not only deepened their resolve to support the mission of insurance inclusion but have also provided meaningful insight into the hardships and resilience of India’s poor.
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The true measure of PMSBY's success lies in the stories of its beneficiaries, the stories of resilience in face of loss. Mrs. Meena Singh, a homemaker from Jehanabad, Bihar, lost her husband in a tragic road accident. Though devastated, the family received ？2 lakh under PMSBY, which helped her continue her children’s education. Her late husband had enrolled in PMSBY through his bank, with just ？20 being auto-debited annually. Similarly, in Karnataka, Rani Kumari, a teenager injured in a bike accident, received timely medical treatment funded by the claim settlement of her deceased brother’s policy. The ？2 lakh payout provided critical financial relief for her family. Further East, in Guwahati, Ms. Riya Das, a young widow, received ？2 lakh within seven days of submitting documents after her husband’s accidental drowning.
These touching stories, though only a few among thousands, reflect how PMSBY has brought dignity and hope to families during times of intense grief and financial distress. For many, it has been the only form of insurance they could afford — turning ？20 into life-saving support.
However, the journey of PMSBY has not been without its share of challenges. Initially, the scheme faced issues related to geographical remoteness, low awareness in rural areas, administrative hurdles in claim processing and difficulty in collecting valid documents to name a few. However, persistent efforts, digital outreach, and supportive government frameworks have addressed many of these concerns. The launch of the Jan Suraksha Portal has improved transparency and ease of enrolment and claims, especially for rural populations. Integration with banking and digital platforms has further streamlined operations and minimised delays.
As India looks ahead to Viksit Bharat @2047, aiming for inclusive development, schemes like PMSBY are foundational to achieving “Insurance for All.” To deepen its impact further, future measures could include Enhancing the coverage from ？2 lakh to ？5 lakh to reflect expanded benefits while remaining affordable, launching awareness campaigns at the block and panchayat levels, strengthening grievance redressal mechanisms and digital claim tracking. These steps will ensure the scheme remains sustainable and responsive to evolving needs, especially amid rising accident-related risks and medical costs.
Over the past decade, Pradhan Mantri Suraksha Bima Yojana has not only promoted insurance literacy but also saved families from financial ruin in the aftermath of tragedies. The collaborative effort of the government, banks, insurers, and the resilience of the beneficiaries themselves has made PMSBY a model for social insurance schemes worldwide.
As we move towards a more secure and equitable India, the journey of PMSBY stands as a testament to the power of simple, well-designed policies in transforming lives. From ？20 premiums to ？2 lakh payouts, the scheme continues to demonstrate that even the smallest contributions can build a future of security, trust, and dignity for all.
(The author is the CMD of National Insurance Company Limited) DISCLAIMER: Names have been changed to protect the identity of the beneficiaries. These are the personal opinions of the writer. They do not reflect the views of www.business-standard.com or the Business Standard newspaper
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