FTA opens new growth avenues for exports, investment and tech collaboration: Industry
NEW DELHI, July 15: India and the UK on Wednesday operationalised a free trade agreement under which a host of domestic goods will enter at zero duty in the British market.
Prime Minister Narendra Modi on Wednesday described the India-UK Free Trade Agreement (FTA) and the accompanying Agreement on Social Security as a “significant moment” in bilateral ties. He said the landmark pacts would deepen economic engagement and create new opportunities for businesses, workers and investors in both countries.
Highlighting the benefits of the trade pact, the prime minister said, “Together, these agreements translate our shared ambition into tangible opportunities for our people. The CETA will give fresh momentum to our farmers, entrepreneurs and MSMEs. Several vibrant sectors will gain stronger access to the UK market.”
“It will also deepen cooperation in technology, professional services and innovation, while supporting greater mobility for skilled Indian talent. The Social Security Agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises,” he added.
Industry leaders, on the other hand, said the trade pact will unlock new opportunities for Indian exporters, boost labour-intensive sectors through zero-duty access to the UK market and deepen bilateral collaboration in investment, technology and innovation.
Business leaders said the pact will enhance the global competitiveness of sectors such as textiles and apparel, leather and footwear, and gems and jewellery, while providing businesses with greater certainty through improved market access and a stable trade framework.
Goods worth USD 140 mn exported on first day
India has exported goods worth USD 140 million to the UK at zero duty under the comprehensive economic and trade agreement (CETA), which became operational on Wednesday, Commerce Secretary Rajesh Agrawal said.
“It is a win-win agreement between the two countries which will have a shadow across economic relations,” Agrawal said while addressing industry and exporters on the day of operationalisation of the pact.
The Department of Commerce, he said, will work with export promotion councils to help industrial clusters understand the benefits of the FTA.
The agreement grants duty-free access to nearly 99 per cent of Indian exports from sectors such as leather, footwear, textiles, mechanical and electrical machinery, plastic, base metals, marine products and gems and jewellery.
These sectors were earlier facing import duty in the UK market in the range of 2-16 per cent. (Agencies)
