India-UK Free Trade Agreement to boost exports across key Indian states

New Delhi [India], July 25 (ANI): The impending India-UK Free Trade Agreement (FTA), also referred to as the Comprehensive Economic and Trade Agreement (CETA), is poised to significantly boost exports from several Indian states by eliminating tariffs and enhancing market access in the United Kingdom.

According to a sector-wise state analysis, Maharashtra, Gujarat, Tamil Nadu, and Karnataka are expected to be among the biggest beneficiaries. Maharashtra's hubs: Pune, Mumbai, and Ichalkaranji- will see increased exports in engineering goods, pharmaceuticals, and apparel.

Gujarat's diverse industrial centres, including Ahmedabad, Surat, Rajkot, and Veraval, are anticipated to gain from stronger demand for pharmaceuticals, chemicals, engineering products, and marine exports.

Tamil Nadu stands to benefit substantially in textiles, leather, and auto parts, particularly in Tiruppur, Vellore, and Chennai. Karnataka's electronics, engineering, and pharmaceutical sectors, centred in Bangalore, are likely to gain from better access and price competitiveness in the UK market.

Coastal states such as Andhra Pradesh, Odisha, and Kerala are set to experience major gains in marine exports, especially shrimp and seafood from ports like Visakhapatnam, Paradip, and Kochi. Kerala is also expected to expand its spice exports, with products like black pepper seeing heightened UK demand.

Northern states, including Punjab, Haryana, Uttar Pradesh, and Delhi, will also benefit from the FTA. Punjab's Ludhiana-based textile and auto parts sectors, Haryana's Gurgaon and Faridabad-based exporters, and Uttar Pradesh's famed Moradabad brassware, Kanpur leather, and Noida apparel sectors are projected to see growth due to tariff-free entry into the UK. Delhi's MSMEs, particularly in jewellery and engineering, will also benefit from streamlined access to UK retailers.

In Rajasthan, traditional exports like Jaipur's gems and jewellery and Jodhpur's furniture and crafts are expected to see a resurgence. Similarly, West Bengal is poised to grow its exports of leather goods, processed foods, and Darjeeling tea.

The much-awaited landmark India-UK Free Trade Agreement was signed on Thursday, in the presence of Prime Ministers Narendra Modi and Keir Starmer, providing greater access to goods and services between the two countries.

The FTA is expected to boost key sectors such as textiles, leather, footwear, sports goods and toys, marine products, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals. (ANI)

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