India-UK FTA Brings Opportunities & Challenges For Kerala’s MSMEs: Minister Rajeev

Thiruvananthapuram, Sep 18 (KNN) The free trade agreement (FTA) signed between India and the United Kingdom is expected to create both opportunities and challenges for the country’s Micro, Small and Medium Enterprises (MSMEs), particularly in Kerala, State Industries Minister P. Rajeev said on Wednesday.

Speaking in the state Assembly, Rajeev noted that tariff-free access to the UK market for key sectors such as apparel, marine, and leather products could enhance the global competitiveness of Kerala’s MSMEs. 

He also highlighted potential export opportunities for coffee, tea, and spices under the new trade framework.

The agreement could generate employment, foster modernisation, and open up new avenues for exports, the minister said.

At the same time, Rajeev cautioned that some micro- and small-scale industries may face challenges due to increased competition from UK firms and higher production costs. 

He stressed that many businesses would need to adopt technical upgrades to meet international standards and remain competitive in foreign markets.

The minister added that the state government is pursuing a ‘smart economy’ approach aimed at the comprehensive development and modernisation of small-scale industries.

The India-UK FTA, signed in July, aims to reduce tariffs on British goods including whisky and automobiles, while boosting bilateral trade by an estimated USD 34 billion annually.

(KNN Bureau)