Free trade agreement between India and Britain.
The free trade agreement between India and the United Kingdom is a big step towards making India the new center of global investment. Experts believe that this agreement will attract multinational companies towards India, who want to diversify their supply chain under ‘China+One Strategy’. 99% of Indian goods in the UK market makes India a cost-effective and attractive investment destination as duty-free access to Indian goods and Europe’s entrance. This will not only increase foreign investment, but will also create new employment opportunities in textiles, pharma and other fields.
According to the ET report, this agreement can be beneficial for India in many ways. The UK, which is considered to be the entrance to Europe, will provide duty-free (without tax) to 99% of India’s goods. This will give global companies producing in India to reduce the cost and reach the UK as well as European markets easily. Especially in sectors dependent on work forces like textiles, gems and jewelery, leather, agriculture and marine products, employment opportunities will open as well as sectors like engineering goods, pharma will get boost.
Investment will increase
Former Commerce Secretary Rajiv Kher said that this FTA will bring the economies of both countries closer. He told that there is already economic integration between India and the UK, but there are more possibilities. A separate investment agreement is also being done with the UK, which will give more clarity about the flow of investment when implemented.
Nagesh Kumar, CEO of Institute for Studies in Industrial Development, said that investment in India will increase due to special access to the UK market. Especially those companies that want to diversify their supply chain under ‘China+One Strategy’ will be attracted to India. India is a cost-affect market, and this agreement will help companies easily deliver its products in the UK and Europe. However, experts say that the final terms and conditions of the agreement will have to be awaited so that it can be clear how much India will benefit in terms of investment. Overall, this FTA can open new avenues of investment, employment and economic development for India.