India-UK Trade Pact: Boosting Exports & Manufacturing

New Delhi, Jul 15 (PTI) The free trade agreement between India and the UK, which came into force on Wednesday, will provide a major boost to exports and strengthen domestic manufacturing, exporters said on Wednesday.

India's exports to the UK stood at USD 13.44 billion in the last fiscal.

All labour-intensive sectors such as garments, textiles, footwear, carpets, processed food, cereals, vegetables, fruits and spices, fish, meat and processed products are now entering the UK market with zero duty.

Earlier, the duty on these goods ranged between 2 and 16 per cent.

The exporters said that the comprehensive economic and trade agreement (CETA) will help achieve the USD 100 billion bilateral trade target by 2030.



EXPORTERS' COMMENTS ON THE CETA:

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Federation of Indian Export Organisations (FIEO) President SC Ralhan said the pact is expected to provide a significant boost to India's merchandise and services exports by reducing tariff barriers, improving market access, simplifying trade procedures, and encouraging greater investments and technology partnerships between the two countries.

"The agreement is expected to enhance the global competitiveness of Indian products by enabling exporters to access the UK market on more favourable terms. It will strengthen the position of India's labour-intensive sectors, many of which are dominated by MSMEs," he said.

He added that the agreement would create improved export prospects for rice, tea, coffee, spices, fruits, vegetables, processed foods, marine products, and other value-added agricultural products.

Trade Promotion Council of India (TPCI) Chairman Mohit Singla said the agreement is not merely about tariff reduction; it represents a comprehensive framework covering trade facilitation, services, digital trade, investment, innovation, and mobility.

"The focus must now shift from agreement to action -- supporting exporters with market intelligence, compliance readiness, buyers connect initiatives, and sector-specific handholding to fully harness the potential of CETA," he said.

Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said it will provide Indian exporters with a significant competitive edge in the UK market, enhance market access, attract investments, create employment and strengthen India's position in global textile and apparel value chains.

"India has entered a new era of trade diplomacy. These agreements are not merely about reducing tariffs, they are about integrating India more deeply into global supply chains and making the country a preferred sourcing destination for international brands looking for resilient, reliable and sustainable manufacturing partners," he said.

Confederation of Indian Alcoholic Beverage Companies (CIABC) Director General Anant S Iyer expressed hope that the pact will lead to enhanced cooperation, sharing of technical know-how, and sharing of best practices that will help in the growth of the alcobev industry.

"We also hope that the agreement will drive investments into India and also help Indian companies which are looking for investments in the UK," he said, adding that lower import duty on Scotch whisky will help Indian alcobev manufacturers to balance their input costs especially in the light of escalation of costs of dry goods, higher cost of logistics and production, as well as rupee devaluation due to the US-Iran conflict.