The India-UK Free Trade Agreement (FTA), concluded on May 6, is set to benefit India’s textiles, ceramics, and pharmaceutical sectors by providing duty-free access to the UK market. The FTA also includes a three-year exemption from social security contributions for Indian professionals working in the UK.
Tariffs on Indian textiles and gems & jewellery exports will be eliminated, enhancing competitiveness against countries like Bangladesh and Vietnam. Pharmaceutical companies will benefit from smoother regulatory processes, facilitating exports of generics and collaborative research.
To maximize gains, the implementation of Mutual Recognition Agreements (MRAs) is crucial, ensuring the recognition of Indian professional qualifications in the UK. Strong enforcement of Rules of Origin (ROO) is also vital to prevent misuse of trade benefits.