New Delhi, July 15: The India-UK Free Trade Agreement (FTA) is being hailed as a significant shift in the business relations between the two nations. This agreement is expected to benefit various sectors, including textiles, Ayurveda, agriculture, processed foods, electronics, pharmaceuticals, gemstones, and handicrafts.
Industry experts believe that this FTA will provide Indian exporters with improved opportunities in the UK market. With reduced tariffs or complete exemptions on several products, Indian goods will become more affordable and competitive.
On the expectations surrounding the India-UK FTA, Commerce Secretary Rajesh Aggarwal stated, “Any trade agreement is not just a means to increase trade. When such agreements are made, a clear and reliable framework regarding tariffs and regulations is established between the two countries. We believe that such trade agreements will also help increase investment in both countries. This will not only strengthen the supply chain between the two nations but also create new opportunities in the global supply chain. Additionally, it will open new pathways for Indian businesses to reach other parts of the world.”
Lindy Cameron, the British High Commissioner to India, announced that the significant FTA, also known as CETA, is now in effect. This will strengthen the already substantial trade relationship worth approximately £48 billion between the UK and India. The agreement is expected to make everyday trade cheaper, faster, and easier, with an anticipated increase of around £5 billion in the GDP of both nations.
Cameron added that starting today, 99% of goods exported from India to the UK will incur no import duties, while 90% of products coming from the UK to India will either be completely duty-free or subject to lower tariffs than before.
Vipin Vohra, Chairman of Continental Carriers Group of Companies, remarked, “This will transform the entire export and import environment between India and the UK. Sectors such as textiles, handicrafts, pharmaceuticals, and gemstones will benefit significantly. We expect a substantial increase in exports, and the number of flights between the two countries should also rise. Governments should focus on granting more landing rights to facilitate increased flights and direct shipping between India and the UK.”
Amrit Manwani, CMD of Sahasra Group, expressed optimism about the agreement, stating, “I believe this is a beneficial agreement for both countries. Until now, India has not been able to export significantly to the UK. With the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA), we expect a considerable increase in exports of both electronic hardware and software to the UK.”
Mithileshwar Thakur, Secretary-General of the Apparel Export Promotion Council (AEPC), noted, “This is a mutually beneficial agreement for both India and the UK. The removal of the 9.6% tariff barrier, which has long affected India’s textile exports, is expected to enhance the competitiveness of the Indian textile industry. We are confident that in the coming years, textile exports from India to the UK will double.”
Sandeep Bhura, Chairman of the IOP EPC, stated, “The India-UK Comprehensive Economic and Trade Agreement (CETA) is a very positive step for our sector. The UK market is worth approximately $500 million, and we expect India’s market share to increase from the current 5-7% to 10-15% over the next four to five years.”
Dr. Tarun Bajaj, a senior advisor to the Indian government, mentioned, “The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to greatly benefit India’s agriculture and processed food sectors. About 95% of products related to agriculture and processed food will enjoy zero-duty access in the UK market, providing a significant competitive advantage for Indian products.”
Dr. A. Shaktivel, Chairman of the Apparel Export Promotion Council, called it a historic moment. He stated, “We have had long-standing good relations with UK buyers, but they have not been able to purchase in large quantities from India due to the competitive advantage enjoyed by countries with Least Developed Country (LDC) status, which allows them to export duty-free.”
Deepak Kumar Badaya highlighted the potential benefits for the Ayurvedic sector, stating, “The India-UK Comprehensive Economic and Trade Agreement (CETA) is expected to significantly benefit the Ayurvedic sector. The demand for Indian Ayurvedic medicines is continually rising globally, with China being the biggest competitor. With the implementation of this free trade agreement, the tariff benefits and the trust in the quality of Indian products may lead buyers to prefer Indian manufacturers and suppliers.”
Dimple Lamba expressed her belief that this is a moment of pride for both the Indian government and the United Kingdom. The implementation of the India-UK Comprehensive Economic and Trade Agreement is expected to bring significant changes for Indian exporters. With zero tariffs on eligible exports, Indian products will become more affordable and competitive in the UK market, creating numerous new and substantial opportunities for business.
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