Will the India-UK FTA Boost Various Sectors of the Indian Economy?
Click to start listening
Synopsis
Discover how the India-UK Free Trade Agreement could transform various sectors of the Indian economy. With statements from RBI Governor Sanjay Malhotra highlighting its potential, learn about the opportunities that this historic agreement could unlock for India.
Key Takeaways
- The India-UK FTA aims to enhance sectors like manufacturing and services.
- Multilateralism has declined, prompting India to pursue more bilateral trade agreements.
- The FTA could empower workers, farmers, MSMEs, and startups.
- Nearly 95% of Indian farm products will receive duty-free access to the UK.
- The TEPA is expected to create 1 million direct jobs in India.
Mumbai, July 25 (NationPress) The India-UK Free Trade Agreement (FTA) is anticipated to benefit a variety of sectors within the country, particularly manufacturing and the services sector, as stated by Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday.
The RBI head emphasized that multilateralism has taken a backseat, indicating that India needs to pursue more free trade agreements with various nations.
"The UK FTA is the pathway forward, as multilateralism appears to be declining," Malhotra remarked at an event, also noting that trade discussions with the US are progressing.
He further highlighted that numerous trade agreements are currently in different stages of negotiation.
During an interaction with IANS in London, Union Commerce and Trade Minister Piyush Goyal mentioned that dialogues are ongoing to enhance trade relations with multiple countries, following India's landmark FTA with the UK, which opens up billions in potential opportunities for both nations.
"We are having very fruitful discussions with New Zealand, Oman, Chile, Peru, and the European Union. Additionally, we are engaged in positive discussions regarding a bilateral trade agreement (BTA) with the United States. I am confident that these negotiations will yield beneficial results," the Commerce Minister stated.
India and the US have recently concluded the fifth round of talks concerning the proposed BTA in Washington, DC.
The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) is set to come into effect on October 1, which is expected to facilitate the creation of 1 million direct jobs in India.
The comprehensive economic and trade agreement (CETA) between India and the UK is viewed as a historic leap that will empower workers, farmers, MSMEs, and startups throughout the nation.
Malhotra further asserted that the UK FTA will support numerous sectors of the Indian economy, with agriculture being a major beneficiary, as nearly 95 percent of Indian farm products will gain duty-free access to the UK.
Point of View
I believe that the India-UK FTA represents a pivotal moment for our economy. It showcases India's commitment to expanding its global trade footprint, which is essential in today's interconnected world. The focus on bilateral agreements is a strategic move as multilateral negotiations falter. This agreement could provide significant economic benefits, particularly for our manufacturing and agricultural sectors.
NationPress
26/07/2025
Frequently Asked Questions
What sectors will benefit from the India-UK FTA?
The India-UK FTA is expected to benefit various sectors including manufacturing, services, and agriculture, with a significant portion of farm products gaining duty-free access to the UK.
How will the FTA impact employment in India?
The FTA is projected to help create around 1 million direct jobs in India, particularly through agreements like the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA).
What is the current status of trade negotiations with the US?
Trade negotiations with the US are in advanced stages, with the fifth round of talks for a proposed bilateral trade agreement concluded in Washington, DC.
Who has made remarks about the FTA's potential?
Remarks about the potential of the India-UK FTA have been made by RBI Governor Sanjay Malhotra and Union Commerce and Trade Minister Piyush Goyal.
When will the TEPA come into effect?
The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will officially come into effect on October 1.
