UK-India SME Meeting Strengthens Trade Ties Amid FTA Progress

As the United Kingdom and India move steadily towards the implementation of their long-negotiated Free Trade Agreement (FTA), recent public remarks from the Prime Ministers of both countries have underscored the growing importance of this economic partnership. UK Prime Minister Sir Keir Starmer reiterated that the FTA represents a pragmatic and mutually beneficial step forward in Britain's post-Brexit trade policy, while Indian Prime Minister Narendra Modi called it a "milestone agreement" that is poised to enhance opportunities for trade, investment, and job creation across both countries. These remarks echo the broader sentiment that the FTA is not merely a transactional arrangement but a foundational pillar in a strategic partnership between two of the world's leading economies.

Within this encouraging diplomatic climate, the UK-India SME Meeting held on 11 July 2025 at the UK House of Parliament provided a timely platform to examine how the evolving FTA framework will influence small and medium enterprises. Organised by the Europe India Centre for Business and Industry (EICBI) with support from Abiflo, the meeting convened parliamentarians, industry voices, and policy advocates to discuss opportunities and challenges for SMEs under the new trade regime.

Opening the session, Mr. Abhishek Tripathi, Vice Chair – Events at EICBI, noted that SMEs are likely to be key beneficiaries of the FTA if supported with the right knowledge and tools to navigate regulatory frameworks and market access. His remarks set the tone for a discussion that focused on practical solutions, sectoral opportunities, and policy alignment.

Among the keynote speakers, Lord Rami Ranger, Member of the House of Lords, underscored the need for both governments to ensure that SMEs receive the institutional support required to succeed internationally. His intervention echoed the broader consensus that SMEs form the backbone of both economies and must be central to future trade strategies.

Mr. Sujit Nair, Chairman of EICBI, offered a snapshot of the current trade landscape, noting that bilateral trade between the UK and India has already reached £46 billion. He pointed to untapped potential in regions of southern India, calling for a diversification of SME engagement strategies beyond traditional commercial hubs.

The meeting also spotlighted the role of the Indian diaspora in the UK, with Cllr. Aarien Areti, Vice Chair – Government Relations at EICBI, highlighting their contributions to the British economy and their potential to serve as a bridge in strengthening bilateral ties through digital innovation and enterprise.

Sector-specific insights added depth to the discussion. Mr. Harsh Patel, CEO of Water and Shark, discussed the likely impact of tariff reductions on niche sectors such as alcoholic beverage exports, where smaller businesses stand to gain from improved price competitiveness. Ms. Andrea Winders, Head of Inward Investment for Life Sciences and Healthcare at MIDAS, emphasised the value of UK-India collaboration in life sciences, especially in driving innovation and improving healthcare delivery.

The meeting also welcomed perspectives beyond conventional trade sectors. Dr. Ravishankar Polisetty, a cardiac surgeon and CEO of Sai Ganga Panakeia Ltd, provided a unique perspective by integrating medical science with entrepreneurship. He presented insights from his research on autism and ADHD and called for greater awareness, research collaboration, and destigmatisation of neurodevelopmental conditions. While his focus was not directly on trade, Dr. Polisetty’s intervention highlighted the broader societal and intellectual partnerships that can be fostered through stronger UK-India ties.

The presence of entrepreneurs from emerging sectors like AI and aerospace, along with students from UK universities, added a dynamic edge to the gathering, reflecting a growing interest in the practical dimensions of international trade among new and upcoming voices.

Though several challenges remain for SMEs engaging in cross-border trade ranging from compliance issues to market unfamiliarity, the discussions affirmed that the benefits offered by the FTA, if implemented with transparency and foresight, will significantly outweigh these hurdles. The meeting demonstrated how collaborative platforms can inform better policymaking, align business expectations, and guide SMEs towards long-term international success.

As negotiations on the FTA advance, forums like the UK-India SME Meeting serve as vital instruments in ensuring the agreement is not just a government-level pact but one that delivers direct, tangible outcomes for business communities. This gathering reaffirmed that the UK-India relationship is maturing into one based on shared economic aspirations, practical cooperation, and mutual respect.