Free trade agreement has been signed between India and the UK. The agreement was reached during Prime Minister Narendra Modi’s visit to Britain, where he met British Prime Minister Kayer Starmer. The agreement was going on for the last three years. Now with its implementation, there is expected to trade between the two countries more than $ 34 billion every year.
This agreement has been named CETA i.e. Comprehensive Economic and Trade Agreement. Many sectors are going to get a big benefit from the new trade agreement (FTA) between India and Britain. After this agreement, the tax (duty) on many goods will be exhausted or reduced, which will increase the export from India to Britain rapidly. The import of many things will be cheaper for both countries. Let’s know the big things about this deal…
Agricultural sector
Many fruits, vegetables, grains, turmeric, black pepper, cardamom and prepared eating items (eg mango pulp, pickle, pulses) will be able to go to Britain without duty. More than 95% of agriculture and processed food will now have 0% duty. This is expected to increase India’s agricultural exports by 20% in the next 3 years and by 2030 it can reach $ 100 billion. Not only this, the process of certification for export will be easy, time and expenses will be saved. New crops like jackfruit, millet, organic herbs will also now go to the UK market, which will give farmers a chance for new income. Fisheries states Andhra Pradesh, Odisha, Kerala, Tamil Nadu will also get the benefit of Britain’s big market. However, India has not given any concession on dairy, apples, oats and oils.
Marine product
4.2% 8.5% tax on India’s shrimp, tuna fish, fishmil and other marine products is now over. Fishermen will get a good price and export will increase, which will increase income. India holds only 2.25% stake in the UK’s $ 5.4 billion Marine market, now it is expected to lead.
Coffee, tea, spices
The UK already buys India’s coffee (1.7%), tea (5.6%), spices (2.9%). Now their export will increase further with duty-free access. Especially for instant coffee, India will benefit greatly and will compete with big suppliers in Europe.
Oil seeds
Low tax and easy processes will increase the export of oil seeds of India.
Textile
Now the opportunity to export on 1,143 product category with 0% duty. Earlier countries like Bangladesh, Pakistan used to benefit, now India has also come on par. Readimed garments, home textile, carpet and handicrafts will directly benefit. India’s stake in 1-2 years can increase by 5% in the UK.
Engineering goods
Electric machinery, auto parts, industrial machinery used to be dutyed up to 18% earlier, now it is also over. In the next 5 years, engineering exports can double $ 7.5 billion.
Electronics and Software
Now duty-free access on goods like smartphones, optical fiber, inverter. New opportunities in software and IT services also expect growth of 1520% every year.
Medicines and medical devices
India’s generic medicines have now become more cheap in the UK, which is expected to increase exports. No duty on devices like surgical instruments, X-ray machines, ECG machines.
Chemical and plastic
Export of chemicals can increase by 3040%. Taxes on plastic products such as pipes, packaging, kitchenware are also over, which expects 15% growth.
Sports Goods and Toys
Taxes on football, cricket goods, rugby balls and toys have also ended. In this, Bharats, China and Vietnam will get an edge.
James and Jewelery
At present, India exports $ 941 million to the UK, which can double in the next 23 years.
Leather and footwear
The 16% duty of leather and footwear is over. Now India’s shoes and leather products will be cheap and demand in the UK market may increase. In this way, hubs like Agra, Kanpur, Kolhapur, Chennai will directly benefit.
Other advantages
A total of 99% of the product has now ended or reduced the duty, which will benefit almost every sector. Processed food was earlier 70% duty, now 0%.
Service sector
It will be easy for experts, yoga trainers, chefs, musicians working on projects like Indian professionals.
Innovation
This agreement will promote new ideas, new technology and research. Indian professionals will now be able to work for two years in 35 areas without any office in Britain. This step will benefit more than 60,000 IT professionals every year. This FTA has brought new opportunities for farmers, fishermen, small businesses, startups, professionals and big industries of India, and a rapidly growing market for all.
These will be cheap in Britain in India
India has decided to reduce tax (duty) on about 90% of goods coming from Britain. This means that now many British products will be found cheap in India.
Scotch Whisky
Currently, the 150% import duty will be reduced to 75% and in the next 10 years it will be reduced to 40%.
Electric vehicle
The tax on these will be reduced from 110% to only 10%, but it will remain inside a fixed quota.
Cosmetics, chocolate, biscuits, lambs (meat), salmon fish, soft drinks and medical devices. All these things will also be more cheap in India. Overall, the average tax on goods coming from Britain will be reduced from 15% to just 3%. With this, Indian customers will be able to get the premium brands of Britain easily at a cheaper price.