India-UK Free Trade Agreement to Boost Textiles, Gems & Jewellery, Sports Sectors

New Delhi, Jul 24 (KNN) India and the United Kingdom have finalised a landmark Free Trade Agreement (FTA) aimed at significantly boosting bilateral trade and benefiting multiple labour-intensive industries. 

The deal, signed after over three years of negotiations, is expected to open new opportunities for Indian exports in sectors like leather, textiles, gems and jewellery, and new sports goods.

Under the agreement, the UK will eliminate tariffs on 99% of Indian exports, providing a competitive edge to Indian manufacturers. 

In return, India will gradually reduce or eliminate duties on 90% of British goods over the next decade. 

This reciprocal arrangement is expected to strengthen trade ties and promote economic growth in both nations.

The textile and apparel sector is among the biggest beneficiaries, as UK import duties ranging between 8-12% will now be removed. 

Industry experts anticipate that this could double Indian textile exports to the UK over the next five to six years. 

Similarly, the leather and footwear industry, which faced tariffs up to 16%, will now enjoy duty-free access, benefiting manufacturing hubs like Kanpur, Agra, and Chennai.

The gems and jewellery sector, a vital part of India’s export economy, is also expected to thrive under the new framework. Industry estimates suggest that exports to the UK could reach $7 billion within two years due to the removal of existing trade barriers.

Sports goods and furniture manufacturers will also gain from zero-duty access to the UK market, improving profitability and market reach. 

Additionally, the agreement includes provisions to ease mobility for Indian professionals, such as visa facilitation and social security exemptions for short-term work.

Overall, the FTA is expected to enhance India's manufacturing competitiveness, generate employment in MSMEs, and deepen its integration into global supply chains. 

Analysts project that the deal could lead to a 15% annual growth in bilateral trade, marking a new era of economic cooperation between India and the UK.

(KNN Bureau)