The newly signed UK-India Free Trade Agreement (FTA) will significantly enhance collaboration and investment in the energy sector, particularly in renewables, according to Kartikeya Dube, Head of Country and Chairman of BP India. “The FTA is a great step towards strengthening trade ties between two partner nations,” Dube said, hailing the historic pact signed on Thursday during Prime Minister Narendra Modi’s visit to the UK.

The agreement, the UK’s largest since Brexit and India’s first with a European economy, is projected to boost bilateral trade—currently at £42.6 billion—by an additional £25.5 billion by 2040. It eliminates tariffs on 99% of Indian exports to the UK, including textiles, footwear, and toys, while 90% of UK exports, such as whisky, cars, and cosmetics, will see tariff reductions, with most becoming duty-free within a decade.

Dube emphasized that the FTA will facilitate “seamless flow of talent and expertise,” fostering partnerships in energy, including BP’s ventures with Reliance Industries. BP’s joint projects, like the KG basin gas fields supplying 15% of India’s gas demand and Jio-BP’s 1,900 retail sites, underscore its role in India’s energy landscape. The deal aligns with India’s goal of energy independence by 2047 and supports a new UK-India offshore wind task force launched in February 2025 to advance renewable energy goals, including India’s target of 500 GW of non-fossil capacity by 2030.

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The FTA, signed by Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds, also includes India’s first anti-corruption chapter and a social security agreement to reduce costs for Indian firms, boosting investments and job creation.

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