Seize the Opportunity: How the UK-India Free Trade Agreement Benefits British Businesses
British corporations should seize the opportunities presented by the significant UK-India trade agreement.
In the shadows of recent political shifts, the UK-India Free Trade Agreement (FTA) is set to ignite a new era of economic growth and partnership. Here's why your business shouldn't miss out.
Last week, business secretary Jonathan Reynolds and Indian commerce minister Piyush Goyal agreed on the landmark FTA - a deal stepping up theUK-India relationship's economic and strategic ties significantly.
This deal, the UK's biggest bilateral trade agreement since leaving the EU, promises to boost UK GDP by £4.8bn and add £2.2bn to wages by 2040. The notable expansion in trade is expected to reach £25.5bn by the same year.
For British businesses, it opens the door to a burgeoning market with a population of over 1.4 billion and a rising middle class - a chance they can't afford to overlook.
Why the UK-India FTA Matters
This historic deal lucratively rearranges trade dynamics, boosting investment and strengthening business ties. While the complete agreement's details are yet to materialize, some promising features include:
- Preferred Trade Access: Nearly 99% of Indian goods can access the UK market, with India committing to cutting tariffs on 90% of tariff lines over the forthcoming decade. By contrast, 85% of tariff lines will become duty-free immediately, creating a level playing field for British companies.
- Sectoral Opportunities: Sectors such as automotive, cosmetics, advanced manufacturing, medical devices, lamb, salmon, and electrical machinery are set to see relaxed tariffs. Similarly, tariffs on goods like clothing, footwear, and foodstuffs will decrease, meaning better pricing for consumers.
- Thriving Partnerships: Firms in both countries stand to gain from simplified regulations and reduced non-tariff barriers, fostering an entrepreneur-friendly environment for cross-border trade.
The FTA's Silver Lining
The agreement's true impact depends on its implementation. Whether the projected figures materialize boils down to British and Indian entrepreneurs, investors, and businesses capitalizing on this new bilateral relationship.
Both nations must ensure customs officials effectively manage the intricacies of rules-of-origin. Scottish distillers, Indian IT firms, and businesses across the spectrum must seize the market-access opportunity this deal offers.
In an era where trade deals hold the key to global prosperity, the UK-India FTA is shaping up to be a beacon of opportunity for British businesses.
Sangeeta Khorana, a professor of international trade policy at Aston University, and Amarjit Singh, the founder and CEO of the India Business Group, London, argue that this monumental deal could be a post-Brexit trade policy dividend for the UK's Labour government.
- The UK-India Free Trade Agreement (FTA) agreed upon by business secretary Jonathan Reynolds and Indian commerce minister Piyush Goyal is expected to significantly increase economic ties between the two nations.
- One of the key features of the UK-India FTA is the 'Preferred Trade Access', allowing nearly 99% of Indian goods to access the UK market with India committing to cutting tariffs on 90% of tariff lines over the next decade.
- Sangeeta Khorana, a professor of international trade policy at Aston University, and Amarjit Singh, the founder and CEO of the India Business Group, London, have argued that the UK-India FTA could be a post-Brexit trade policy dividend for the UK's Labour government.
- To fully reap the benefits of the UK-India FTA, British and Indian entrepreneurs, investors, and businesses must ensure they effectively manage the intricacies of rules-of-origin and seize the market-access opportunities this deal offers.
