British Parliament likely to approve India-UK FTA in next nine months

The bilateral trade is expected to double by 2030, says British Dy High Commissioner

Bengaluru: The British Deputy High Commission on Tuesday conducted an awareness session on the recently concluded Comprehensive Economic and TradeAgreement (CETA) between India and the UK for the members of Bangalore Chamber of Commerce and Industry (BCIC).

Harjinder Kang, Trade Commissioner, South Asia & British Deputy High Commissioner, Western India, and Chandru Iyer, British Deputy High Commissioner, Karnataka & Kerala, and Deputy Trade Commissioner, South Asia (Investment) explained to the BCIC members how this strategic partnership can unlock new opportunities for bilateral growth and collaboration.

Kang said the British Parliament will debate on the FTA in its upcoming session in September and the FTA is likely to be approved in the next nine months to one year.

The India-UK FTA aims to double bilateral trade between the two nations by 2030. The bilateral trade is expected to go up by an additional 25.5 billion pounds in the next five years. Once the FTA becomes officially implemented, 99 per cent duty-free access will be provided to Indian goods, including textiles, leather, footwear, marine products, and engineering products in the UK market, Kang said.

India will reduce tariffs on 90 per cent of British products, including whisky, gin, cosmetics, and automotive components. The agreement will foster mutual growth between the two nations, with benefits for both countries in various sectors, he said.

The FTA is expected to have a significant impact on both economies in terms of job creation, particularly in labour-intensive sectors. The FTA may promote technology transfer, investment, and innovation across various sectors. The agreement may act as a catalyst to boost Indian Participation in IT, finance, and digital trade services through commitments on services and professional mobility, Kang added.

Commenting on the FTA, Prashant Gokhale, President,BCIC said, "The India-UK FTA is a landmark deal that will usher in a new era of cooperation and mutual growth between the two nations. We believe that this agreement will have a significant impact on our economies and will support job creation, technology transfer, and innovation."

K Ravi, Senior Vice President, BCIC and Chairman of the International Business Expert Committee said, "For Karnataka, with its thriving sectors in aerospace, IT services, advanced manufacturing and renewable energy, this agreement could unlock unprecedented opportunities for collaboration and market access."

Iyer said already renowned Bengaluru-based companies like MTR and Hutti Kapi have opened their outlets in London and there is a vast scope for many Indian brands to open their stores across the UK."There is a huge opportunity for traditional industries of Karnataka such as Channapatna toys, Mysore Silk, and gems & jewellery product makers to enter the UK market," Iyer added.