India-EU Free Trade Agreement will provide huge benefits to Uttar Pradesh in exports, investment and employment. Leather, handicrafts, electronics, agriculture and MSME sectors will get better access to the European market, which will give a new impetus to the economy of the state.
Lucknow. The Free Trade Agreement (FTA) concluded between India and the European Union (EU) will prove to be a major transformational step for the economy of Uttar Pradesh. This agreement signed under the leadership of Prime Minister Narendra Modi has given India an opportunity to connect strongly with reliable global markets.
This agreement is being considered historic for Uttar Pradesh, which has an industry, agriculture and labour-intensive structure, in terms of exports, investment and employment. According to experts, easy access to a large market with about 45 crore consumers from 27 European countries will directly benefit both traditional and modern industries of UP.
India-EU FTA will prove to be a game-changer for labour-intensive industries
Labour-intensive industries of Uttar Pradesh will get the biggest benefit from the India-EU FTA. Among these, leather, footwear, textiles, handicrafts, carpet, brass industry, food processing and MSME based production units are prominent. Low or zero duty will reduce the cost of these products in the European market, thereby increasing their export competitiveness and expanding production capacity.
Leather industry of Kanpur and Agra will get new life
Kanpur and Agra have long been major leather and footwear hubs of the country. The elimination of tariffs of up to 17 percent under the India-EU FTA will make footwear, leather products and accessories made here more competitive in the European market. Thousands of tanneries, MSME units and artisans associated with them will directly benefit from this. Experts believe that this will create employment opportunities on a large scale for women and youth.
The craftsmanship of Saharanpur, Moradabad and Bhadohi will get global recognition.
The wood-based handicrafts and furniture of Saharanpur, the brass industry of Moradabad and the carpet industry of Bhadohi are already export-oriented. After India-EU FTA, these products will get better access and competitive pricing in the European market. This is likely to provide stable orders, better income and international brand recognition to the artisans. These districts identified under the ODOP scheme are expected to get special benefits.
Strengthening of electronics hub of Noida and Yamuna Expressway area
The electronics manufacturing ecosystem of Noida and Greater Noida is already attracting global companies. Getting competitive access to the EU’s approximately $744 billion electronics market will strengthen the electronics, engineering goods and semiconductor supply chain in Uttar Pradesh. This will increase demand for investment, technology transfer and skilled manpower.
Farmers will get direct benefits from the international market
The impact of India-EU FTA will not be limited to industries only. Farmers of Western and Eastern Uttar Pradesh will also benefit from this. Tea, coffee, spices, fruits and vegetables, dairy products and processed foods will get better opportunities in the European market. This will strengthen FPOs, cold chain, food processing units and rural employment.
Employment opportunities will increase for MSMEs, women and youth
The MSME sector of Uttar Pradesh will be the major beneficiary of this agreement. With increase in export-based production, participation of women, income of domestic artisans and skilled and semi-skilled jobs for the youth will increase rapidly. New employment opportunities will also be created in supporting areas like logistics, packaging, design, quality certification and e-commerce.
UP will become manufacturing hub for European investment
The India-EU FTA positions Uttar Pradesh as an attractive manufacturing and export base for European companies. Investment opportunities for EU companies in sectors such as expressway networks, defense and electronics corridors, industrial parks and medical devices will increase rapidly.