As the India-UK Comprehensive Economic and Trade Agreement (CETA) came into effect from 15 July 2026, Karan Bilimoria, founding Chairman of the UK India Business Council and founder of Cobra Beer, speaks with TNIE on how the two countries can expand partnership beyond trade.
Let us begin with your assessment of the current global economy. Bond yields and inflation are rising, and geopolitical tensions remain elevated. How do you see the global economy performing over the next one year?
The only certainty now is uncertainty, and that is what we are learning to live with as a global economy. Black swan events were meant to be once-in-a-blue-moon events. Now, when you think about it, they seem to occur almost every year. It is one thing after another. How is a country, let alone a business, supposed to operate in an environment where business craves certainty but there is no certainty?
What is amazing is how resilient the global economy has been, relatively speaking. We have not had a major stock market or credit crisis. Bond yields are going up, but so far we have been relatively resilient.
This is where we need the global community to work together. India has shown that it can take a leadership role. It has also shown that in these turbulent times it can grow at 7.8% in the last quarter. That is phenomenal by any standards for a major economy.
Do you think the global economy is moving in the right direction?
The worrying thing is that we are moving into a more protectionist environment. We had a period of globalisation that worked really well. Globalisation enabled countries to prosper. Opening up economies has been hugely beneficial.
The free trade agreement between the UK and India is something I am very grateful for. A free trade agreement between India and the European Union will also be very important because it will benefit both countries by freeing up the movement of goods, services and people and facilitating research, education and innovation.
I believe India and the UK, given their close relationship, should work increasingly closely not just on goods, services and investment, but also on defence and security as trusted partners. India's membership of the QUAD is very important. NATO is also crucial. The UK is involved in different groups in terms of business, economy, trade and security, and these things go hand in hand.
Are you suggesting that India should get closer to NATO?
India has traditionally followed a non-aligned approach, but it is also very good at partnering with countries. There is no question that free trade agreements, such as the UK-India and India-EU agreements, as well as security arrangements and joint exercises between the UK and Indian armed forces, are the way forward.
India has traditionally been closer to Russia, particularly in defence cooperation. Do you think that relationship needs to change?
Russia has traditionally been India's number one supplier of arms, whether ships, aircraft or tanks. But over the years India has also acquired Jaguars and Hawk trainers from the UK, Mirage fighters from France and artillery from Sweden. India also has a nuclear agreement with the United States. It has been very clear about improving its own defence manufacturing capabilities.
Coming back to the India-UK free trade agreement, it is now in force. What has been your early experience? Are there any teething issues?
The biggest issue with free trade agreements is making sure businesses actually use them. It is incumbent on both the UK and Indian governments to promote the free trade agreement to businesses and tell them -- it is there, so make the most of it. The tariffs on major items will come down significantly. But the agreement is about much more than tariffs. It also enables innovation and creates an environment for foreign universities to establish themselves in India.
The FTA has been implemented only recently. What fundamentally needs to change to ensure more businesses use it? Are there bottlenecks that governments on both sides need to address?
It is not just about the FTA; it is also about all the other things around it. For example, there is mutual recognition of qualifications. India did not previously recognise one-year master's degrees from the UK. Now that is going to change. Foreign lawyers have not traditionally been allowed to operate in India. A solicitor should be allowed to come here and provide advice to Indian businesses. Universities have already started moving in that direction.
Investment between the two countries is also increasing rapidly. It is not just about trade.
Do you think India and the UK should have a bilateral investment treaty?
I think we could have one. We have been working towards one. I don't know when it will happen, but regardless of that, we need to keep encouraging investment, and it is happening.