AP Chambers Hails India-U.K Trade Pact

Fast Summary

• The india-U.K. Free Trade Agreement (FTA) was signed on July 24, granting duty-free access to 99% of Indian exports.
• andhra Pradesh Chambers of Commerce & Industry welcomed the FTA, emphasizing its potential boost for various export sectors in the state.
• Key beneficiaries from Andhra Pradesh include textiles, gems and jewellery, leather, marine products, agriculture produce, food processing, electronics, chemicals and engineering goods.
• Andhra Pradesh exporters have faced challenges due to the pandemic and global economic uncertainties; this agreement is seen as an opportunity to advance exports not only to the U.K. but also via U.K. gateways into the European Union.
• The agreement provides tariff-free access for seafood exports into the $5.40 billion U.K. marine import market and also agricultural products including turmeric, coffee, mango pulp and spices.
• Increased exports under this trade pact are expected to generate employment in Andhra Pradesh while benefiting MSME exporters through streamlined customs procedures and removal of trade barriers.

Indian Opinion analysis

The India-U.K. FTA represents a significant development for export-driven states like Andhra Pradesh by eliminating tariffs across major categories such as seafood and agri-produce that are core strengths of its economy. This policy change could help offset factors like economic slowdown and global disruptions that have hampered growth in recent years.

Long-term gains might manifest in job creation within industries critical for local economies while fostering broader connectivity with European markets via U.K., encouraging diversification across higher-value export sectors such as engineering goods or electronics manufacturing.

Supportive measures aimed at removing burdensome customs procedures further underline a mutually beneficial framework with implications beyond immediate trade flows by promoting competitiveness among MSMEs-an integral part of India’s overall economy.

Read more: India-U.K Free Trade Agreement

Image:
!Andhra Pradesh Chambers president P. Bhaskara Rao
Photo Credit: apchambers.in