India-UK trade pact to boost exports, jobs and services sector: WTC Mumbai Chairman
Mumbai, July 15
The India-United Kingdom Comprehensive Economic and Trade Agreement, which came into effect on Wednesday, is expected to provide a major boost to India's exports, employment and services sector by offering near-complete tariff-free access to the UK market, World Trade Centre Mumbai Chairman Vijay Kalantri said on Wednesday.
Welcoming the implementation of the agreement, Kalantri said nearly 99.5 per cent of the value of India's exports to the UK would now enjoy zero tariffs, opening up significant opportunities for Indian businesses across multiple sectors.
"First of all, we welcome the agreement. And we are happy that we are seeing the light of the day. The agreement is being implemented with effect from today, he told IANS.
He said industries such as gems and jewellery, textiles, engineering goods, agro products and food processing would be among the biggest beneficiaries of the trade pact.
"About 99.5 per cent of our exports value will have no tariff. It is actually 98.5%, but if you take the value, it is 99.5 per cent value of the products. The sectors which will benefit will be gems and jewelry, textiles, engineering goods, agro and food. These are the sectors who will be main beneficiaries," Kalantri stated.
Kalantri noted that Indian manufacturers must now focus on improving productivity and expanding capacities to fully leverage the opportunities created by the agreement.
He added that sectors such as auto components would also stand to gain from improved market access.
"Now, what we have to do is we have to tighten our belt and increase productivity in this region. There are auto components. Then if you go other way, the various other sectors like services, they will allow our yoga teacher, they will allow our chefs. They will also allow services, which were not there earlier. Then they also agreed to relax the visa regime," Kalantri told IANS.
— IANS
Reader Comments
As someone working in the auto component sector, this is a game-changer. But let's be real—our productivity and quality standards need a major upgrade to match UK demands. The chairman is right about "tightening our belt." Hope this leads to more R&D investment and skill development in our manufacturing hubs like Pune and Chennai.
While I'm optimistic, I wish the agreement addressed non-tariff barriers more clearly. UK's strict quality standards and testing requirements can still be a hurdle for our food processing sector. Also, will our farmers actually benefit from zero tariffs on agro products, or will it just help big processors? Need more clarity from WTC Mumbai.
Impressive move by India and UK! As a business consultant, I see this opening up new opportunities for service exports too—IT, legal, and architectural services. The visa relaxations for skilled professionals is crucial. Let's hope both sides maintain the momentum and work on mutual recognition of qualifications next.
Finally, some good economic news! 🙏 The UK is a traditional trading partner, and this pact will strengthen ties beyond just trade. But I'm a bit concerned about the domestic industry—can our small-scale textile units compete with UK's high-tech manufacturing? Need robust support for their modernization. Overall, a step in the right direction.
Great initiative! The gems and jewelry sector will particularly benefit—India is already a global leader in diamond cutting. The zero tariffs will be a huge boost to Surat and Mumbai's exporters. But let's not forget that tariffs aren't the only barrier; logistics and customs delays still need improvement
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