New Delhi
India-UK Free Trade Agreement has been done between India-UK, under which India will sell its products ‘0’ or less tax in Britain. According to reports, about 99 percent of India’s things will be sold at low tax in Britain. At the same time, 90 percent of UK things will be sold on low tariffs in India. The sign on FTA Documents took place on Thursday in the presence of Prime Ministers of both countries.
Prime Minister Narendra Modi (PM Narendra Modi) had said about this deal that this will further strengthen India at the global level. Also, the annual trade between the two countries will increase by $ 34 billion. Under this deal, business is to reach $ 120 billion by 2030. This will also benefit the common people, in which the rates of some things coming from Britain will decrease.
What will happen cheap?
If you are fond of wine, then the rate of scotch whiskey may fall by about 20 to 50 percent. At the same time, electronics, clothes, leather products and medicines, metal and jewelery can be cheaper. Whereas agriculture products, cars and bikes like auto and steel items can be expensive.
These products will sell a lot in Britain
From FTA to United Kingdom (UK), things with importing will also become cheaper, which will increase its production rapidly. People will buy Indian product more. Union Minister Piyush Goyal has shared the image, which states which products from which state will be imparked in Britain, which will leave the impression of Made in India.
Trade target between the two countries
Let me tell you, trade between the two countries in the year 2023-24 was worth Rs 4.74 lakh crore (about 60 billion dollars), and India’s exports can increase by 60%. It is estimated that in the next 5 years, there may be a huge increase in exports to Britain in areas such as Indian garments, leather, gem-jewelery, marine products and automobile parts.
These products will sell a lot in Britain
This agreement will levy zero charges on more than 95% agriculture and food products associated with it, which will increase agricultural exports, will give strength to the rural economy. Agricultural exports are estimated to increase by more than 20% in the next three years, which will contribute to India’s target of $ 100 billion exports by 2030. The fee in India on 90% of UK products will be removed or reduced. Indian spices, fruits, vegetables, and handicrafts will be cheap and more available in Britain. Scotch whiskey (150%to 75%, then 40%in 10 years), cars (100%to 10%), cosmetics, chocolate, biscuits, salmon fish, and medical devices will be cheap in India.
Big opportunities for farmer
This will open the premiums of the British market for Indian farmers, which will be equal to or even more than the benefits of Germany, Netherlands and other European Union countries. Turmeric, black pepper, cardamom, pickle and pulses will also get a fee-free access. While Britain’s export (whiskey, cars, medical equipment) to India can also increase by 60%. The goal is that the trade processes between the two countries make the trading processes simple and digital, which will reduce trade costs.
This deal is also a part that industries like textile, leather, and gemstone-jewelery in India will increase the opportunities. The MSME sector, especially regional handicrafts such as Kolhapuri Chappal and Banarasi saree, will get an edge in the UK market. Thousands of jobs will also be born in Britain, especially in whiskey, automobile, and medical equipment sector.
India’s 99% exports will get a fee-free access in Britain, on which 4-16% fees are currently charged. This will greatly benefit areas like textile, leather, shoes, gems-jewelery, sea products, automobile parts, and electric vehicles. Especially agricultural and marine products (such as shrimp, tuna, spices, turmeric, jackfruit, millet) will get more than 95% fee-free access, which is expected to increase agricultural exports by 20% in the next 5 years.
Power of Make in India
It is expected that after 5 years, this agreement will strengthen ‘Make in India’ and women entrepreneurship in India, as the agreement emphasizes gender equality and labor rights. Under the deal, Indian professional (eg IT, health, yoga instructor) will benefit from three years exemption in temporary visas and social security contribution in Britain. Whereas after 5 years, about 100 additional annual visas and increased labor mobility will give Indian youth more opportunities in Britain. More than 60,000 IT professionals will be able to work through temporary visas in Britain.
Expansion of economic and strategic partnership
This agreement will not be limited to trade only. By the year 2030, after 5 years, India and Britain will increase cooperation in areas like defense, technology, education, climate, and innovation under ‘UK-India Vision 2035’. However, at the moment, who will benefit more, it is complex, because both countries will get significant benefits in different areas.
Jammu-Kashmir: West Shawl, Basmati Rice, Kashmiri Saffron and Kashmiri Willow Bats
Himachal Pradesh and Uttarakhand: Basmati rice
Punjab- Jalandhar Sports Gues, Basmati Rice
Delhi- Basmati rice
Rajasthan- Jaipur Gemstone and Jewelry
Gujarat– Surat Textile, Morbi’s Earthen Cartan and Diamond of Surat
Maharashtra– Kolhapuri Footwear, IT Services
Karnataka– Channapatan Toys
Kerala– Rubber and Turmeric
Uttar Pradesh-Earthen utensils made in Khurja, Sports Products of Meerut, Basmati Rice and Leather of Agra-Kanpur
Telangana– IT service
Andhra Pradesh– Coffee and Turmeric
Tamil Nadu– Kanchipu sari, turmeric, darriya, sleeper and IT service
Bihar- Sikki Gross Toy, Bhagalpur Silk, Makhana and Lichchi
Tripura– Natural and produced rubber
West Bengal- Sari, Dajarling Tea, Daria and Santiniketan leather
