• Source:JND
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India-UK Free Trade Agreement: In a historic feat, India and the United Kingdom finally concluded their long-awaited Free Trade Agreement, the India-UK FTA, in the presence of Prime Minister Narendra Modi and British Prime Minister Kier Starmer.

The FTA, which British PM Starmer termed as "the biggest and economically most significant trade deal since EU exit", is set to double the trade between the two countries to $120 billion by 2030.

According to the FTA, the average import tariff on UK products will be reduced from 15 per cent to 3 per cent. This will increase the presence of British products in the Indian markets, providing ample options for the consumers while benefiting the UK businesses.

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Indian artisans' work to draw more demand

On the other hand, 99 per cent of the Indian products will see tariff elimination covering almost 100 per cent of the trade value. One of the key beneficiaries of the FTA is the Indian artisans' traditional textile and footwear products, like Banarasi Sarees, Chanderi Silk and Kolhapuri Chappals, among others.

At present, the textiles and apparel draw 8 to 12 per cent of the tariffs when exported to the UK. With the FTA coming into effect, this tariff slash will lower the prices of these products in the UK markets while making it a lot easier for the Indian businesses to sell in the European country.

The prominent industries in Tiruppur, Surat, Maharashtra, Karnataka, UP and Ludhiana are projected to grow by 40 per cent over the next three years. Apart from textiles and leather, the gold and jewellery products will also be duty-free to be exported to the UK.

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The tariff reduction on artisan-centric products not only favours trade but also creates a ripple effect on the domestic workforce as lower prices in UK markets will generate more demand, thereby creating more employment opportunities for artisans, especially women.