Frictionless commerce, not symbolic gestures, says Shankar on the India–UK FTA’s potential for SMEs

PIONEER NEWS SERVICE | Dehradun

The India–UK Free Trade Agreement (FTA) is a historic turning point in bilateral trade relations. With the ambitious goal of doubling trade between the two nations to $120 billion by 2030, the agreement promises tariff elimination on 99 per cent of Indian exports and reduced duties on 90 per cent of UK goods. But for Siddhartha Shankar, Global Chief Operating Officer of Komerz Limited—a company bridging global retail and distribution—the FTA’s true value lies in its power to disrupt outdated trade models and enable frictionless commerce.

He said, “This FTA comes at a pivotal time for both economies. Having built businesses that operate across both markets, I see this as a real catalyst for deeper economic integration. It lowers barriers not just for goods, but for ideas, partnerships and innovation.” For Shankar, the agreement could be a transformative moment for small and medium enterprises (SMEs), particularly those looking to expand beyond their borders. “For Indian SMEs—especially in consumer goods, textiles and light manufacturing—simplified trade processes and tariff reductions offer a golden ticket to the UK market. It gives them the ability to compete on quality and innovation, not just cost,” he said.

On the UK side, Shankar sees parallel opportunities. “British SMEs now gain access to India’s massive and rapidly growing consumer base. For sectors like F&B, wellness, personal care, and tech-enabled services, this is huge. Lower duties and faster regulation mean better margins and quicker entry,” Shankar said.

“This isn’t just about exports and imports. This is about building long-term value through innovation, shared infrastructure, and joint ventures. That’s where real growth happens,” he added.

While most FTAs focus on tariff cuts and trade volumes, Shankar urges policymakers to look deeper. “Too many trade agreements are built for large corporates, while SMEs and startups are left to deal with red tape. If this deal benefits only the multinationals, we’ve missed the point,” he warns.