New Delhi, India- During Prime Minister Narendra Modi’s visit to the UK on Thursday, India and the UK officially signed a historic Free Trade Agreement (FTA), also known as the Comprehensive Economic and Trade Agreement (CETA). This important agreement is expected to give India’s manufacturing industry a big boost and give local business owners greater power by removing tariff obstacles. This would make Indian items that require a lot of labor more competitive in the British market.
The CETA is a big deal because it aims to double commerce between the two economies from $56 billion to almost $120 billion by 2030. The deal will allow Indian commodities like leather goods, electrical machinery, and chemicals to enter the British market without paying duties. This will lead to a lot of growth.
A Fair Playing Field for Indian Goods
The FTA is about to make the playing field level, which will help a wide range of Indian goods, from fresh fruits to Goa’s famous feni, from the famous Kolhapuri chappals to the adaptable jackfruit, and from high-quality basmati rice to exquisite textiles.
Piyush Goyal, the Minister of Commerce and Industry, said on X (previously Twitter) that the FTA will open up almost $23 billion in potential for labor-intensive sectors by allowing about 99% of Indian exports to the UK to enter without paying duties.
How India Will Benefit: Crafts, Agriculture, and Services
The CETA has a lot of benefits for different parts of India:
Agriculture & Processed Foods: More than 95% of the tariff lines for agricultural and processed foods in the UK will now have no duty. This means that India can export things like cereals, turmeric, pepper, and cardamom, as well as processed foods like ready-to-eat cuisine, mango pulp, pickles, and pulses without having to pay any taxes. The deal also makes it easier for specialist products like jackfruit, millets, and organic herbs to get into the market.
Traditional Craft Beverages: Many traditional Indian drinks are about to become known around the world. Some of the handmade products that would gain from this new contract are Goa’s famous feni, Nashik’s artisanal wines, and Kerala’s toddy.
Fisheries Sector: States with large coastal economies, such as Andhra Pradesh, Odisha, Kerala, and Tamil Nadu, are likely to see more chances in the UK’s marine import market. The fisheries sector as a whole is projected to benefit.
Benefits for Each State: The FTA makes it easier for certain Indian states to increase their exports:
Maharashtra can send more grapes and onions to other countries.
Gujarat will benefit from cotton and groundnuts.
Punjab and Haryana can send more basmati rice to other countries.
There will be more spices in Kerala.
States in the Northeast can boost exports of fruit-based goods.
Giving women more power and supporting local manufacturing
One important part of the FTA is that it might help Indian women manufacturers by giving them free access to the UK’s huge $23 billion market for goods that need a lot of work. This encompasses areas such as leather, textiles, and shoes.
The deal is mostly about sending labor-intensive goods like leather goods, shoes, and clothes to British markets at lower prices. It wants to give women more power in a number of fields, such as handlooms, heritage crafts, and clean manufacturing. It does this by helping them join global value chains, making it easier for them to get loans, and allowing them to grow their businesses.
The famous Kolhapuri chappals, which are made by women and family-run artisan groups in Maharashtra, are a great example. The FTA lets these unique leather shoes into the UK market without paying any taxes. This step is expected to not only help local and family-owned businesses, but also help people recognize the brand, keep their cultural identity, and export goods that are beneficial for the environment.
In addition to Kolhapuri chappals, other cultural and economic centers in India are also ready to flourish. The famous looms in Varanasi, the cutting-edge digital labs in Hyderabad, and the lively artisan clusters in Rajasthan will all gain greatly from this wide-ranging trade arrangement with the UK.