India-UK FTA to be highly beneficial for Indian businesses: Industry
Mumbai, July 20
The recently concluded India-United Kingdom Free Trade Agreement is a landmark development that is expected to provide a major boost to Indian businesses across sectors, with benefits extending from large corporations to micro, small and medium enterprises, an industry body said on Monday.
Speaking exclusively to IANS, Indian Merchants' Chamber (IMC) President Prof. Mahendra Kumar Chouhan described the agreement as a "historic step" that would strengthen India's export ecosystem by creating opportunities across manufacturing and services while making exports more inclusive.
He said the FTA is expected to democratise exports by enabling businesses of different sizes and industries to tap the UK market. According to him, the benefits will not be confined to large companies but will also support medium-sized firms and MSMEs, helping them expand their global footprint.
Highlighting the sectors likely to gain the most, Chouhan said textiles and apparel, gems and jewellery, leather and leather goods, information technology, professional services and other labour-intensive industries stand to benefit significantly under the agreement.
He noted that India's globally recognised expertise in diamond cutting and polishing gives the country a strong competitive advantage in the gems and jewellery sector.
Similarly, India's skilled workforce in information technology, fintech, financial services and software engineering is well-positioned to increase its presence in international markets through improved access to the UK.
Chouhan said India's cost-efficient production, when combined with access to a high-income consumer market such as the United Kingdom, would enable domestic companies to achieve better value realisation for their products and services while enhancing their global competitiveness.
Speaking on the country's push for self-reliance, Chouhan cited aerospace startup Skyroot Aerospace as an example of India's growing indigenous technological capabilities.
He said the company's success in developing advanced rocket technology using indigenous innovation reflects the country's increasing emphasis on research, innovation and domestic technology development.
He added that the achievement of a young team of engineers and entrepreneurs demonstrates India's talent pool and should encourage more industries to invest in homegrown technologies and locally developed components.
— IANS
Reader Comments
Finally some tangible progress! 🇮🇳 The UK has a huge Indian diaspora that appreciates our goods. Our spices, textiles, and jewellery are already popular there. This FTA could make it easier for small artisans to export directly instead of through middlemen.
Good for big corporates maybe, but what about our farmers and small traders? FTA often means cheaper imports flooding our market. I hope our negotiators have protected sensitive sectors like dairy and agriculture. We should learn from past agreements.
Skyroot Aerospace is a brilliant example! 🚀 Our startups are truly world-class. This FTA will help them access UK investors and partners. Proud of our young engineers showing the world what "Make in India" really means.
As an NRI living in the UK, I'm thrilled! Indian brands and products are already doing well here. The FTA will mean more authentic Indian goods on shelves. But the UK also needs to simplify visa processes for Indian professionals - both sides must benefit equally.
All this talk about exports is fine, but we need to see if it actually translates to job creation for our youth. FTAs often benefit established players. The real test will be whether a small dyer in Surat or a weaver in Varanasi sees any difference.
M Michael C