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The India-UK Free Trade Agreement (FTA) has been heralded as a landmark development, enhancing trade access between the two nations. Industry leaders view it as an opportunity to significantly boost trade in the UK. Anant S Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies, asserts that the agreement will fortify economic ties across various sectors.
Under the FTA, tariffs on about 99% of Indian exports to the UK are slated for elimination or reduction. This affects approximately 99 lines of business, many of which are labor-intensive. Iyer recommends government measures such as setting a minimum import price for alcoholic beverages to prevent disruptions caused by low-priced imports.
British whisky producers will immediately benefit from a substantial decrease in tariffs, gaining an advantage in the Indian market. The agreement also aims to double engineering goods exports from India, with expectations to increase from $4.2 billion to $7.5-8 billion within a few years, according to Pankaj Chadha, Chairman of EEPC India.
Archana Jahagirdar of Rukam Capital notes that the FTA, along with the Vision 2035 document, offers crucial opportunities for entrepreneurs and investors. By reducing tariffs and improving market access, it sets the stage for innovation and enhanced cross-border collaboration in areas such as digital trade and sustainability.
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Sectors like textiles, apparel, footwear, and emerging export fields such as organic chemicals and engineering goods are poised to benefit. Ajay Sahai, CEO of FIEO, underscores the agreement’s significance, highlighting its support for both traditional and new export sectors.
The FTA is part of a broader strategic vision to increase bilateral trade, aiming to grow India and the UK’s trade to $120 billion by 2030. Signed in the presence of both nations’ prime ministers, this agreement aligns with India’s economic goals and marks a significant step forward in international trade relations.
(With inputs from agencies.)
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According to the passage, which sector is expected to see a significant increase in exports under the India-UK Free Trade Agreement?
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