The India-UK free trade agreement has opened up preferential access for India's farmers to the UK’s $37.5 billion agricultural market while India fully protects its sensitive sectors.
Share
NEW DELHI — The India-UK free trade agreement has opened up preferential access for India's farmers to the UK’s $37.5 billion agricultural market while India fully protects its sensitive sectors like dairy, vegetables, apples, cooking oils and oats, according to an official statement.
There is also a massive gain for rural India and exporters with zero duty on processed foods compared with up to 70 per cent earlier.
The trade pact also gives a big catch to Indian fishermen as the $5.4 billion UK market opens up for marine exports with the UK’s import duty on marine products to come down to zero from up to 20 per cent earlier, the statement said.
Also read: SBI Life clocks 14 pc jump in Q1 net profit
The free trade agreement opens up new opportunities for India’s youth who will benefit from more jobs and higher wages in the services sectors like IT, finance, and consultancy.
Duty-free access to the UK’s 238 billion market boosts jobs for youths and opens new career avenues in the export of textiles, leather and gems. The UK market also opens for Indian youth in education and architecture services.
The agreement also paves the way for smoother routes for Indian businesses as the FTA offers simplified customs, equal treatment and procurement access. India’s MSMEs can now bid for UK government contracts, and the services sector gains visa clarity, too.
Besides, the FTA gives a big boost to job creation as labour-intensive sectors such as textiles and clothing get a competitive edge in the UK market.
The free trade agreement provides for zero duty on major sectors - down from up to 12 per cent on textiles and clothing, 8 per cent on chemicals and 10 per cent on base metals.
IT and services sector businesses have been given more clarity for skilled Indian professionals. Professionals to get better mobility access to the UK, which will enable up to 1,800 Indian chefs, yoga instructors, and classical musicians to move temporarily to the UK to provide services.
A senior official said as many as 75,000 Indian workers in the UK will gain from a 3-year exemption from social security contributions.
Alongside the FTA, the UK and India have agreed to a Double Contributions Convention (DCC). The DCC will ensure that employees moving between the UK and India, and their employers, will only be liable to pay social security contributions in one country at a time.