India-UK FTA to remove taxes on textiles, leather, and footwear exports. The deal aims to boost bilateral trade to $120 billion by 2030.
Shares of textile exporters such as Gokaldas Exports, KPR Mill, and Arvind Ltd were trading in the positive territory on Monday after India and the United Kingdom signed a ‘landmark’ trade deal. The textile exports will attract nil duty under the free trade agreement between the two nations.
The trade deal will remove taxes on the export of labor-intensive products such as clothing, leather, and footwear, while making imports of cars and whisky from the UK cheaper to multiply trade between the two economies to USD 120 billion by 2030.
Indian exports with zero duty include textiles, clothing, minerals, gems and jewelry, plastic, chemicals, rubber, wood, paper, glass, ceramics, mechanical and electrical machinery, base metals, arms/ammunition, transport/auto, sports goods, animal products, furniture, and processed food.
Currently, these goods have an import duty of 2% to 18%. SC Ralhan, President of the Federation of Indian Export Organizations (FIEO), called it a landmark step that will significantly increase the bilateral trade and attract strategic investments. “This agreement comes at a pivotal time when India is positioning itself as a resilient and reliable trade partner in a rapidly evolving global landscape,” he said.
A Sakthivel, Vice Chairman of the Apparel Export Promotion Council (AEPC), said, “The free trade agreement marks a transformative milestone for India’s textile industry. By unlocking new export opportunities, reducing trade barriers, and enabling greater access to the premium UK market, this agreement promises to empower Indian weavers, manufacturers, and exporters across the value chain.”
News Curtesy: upstox