India-UK FTA to be highly beneficial for Indian businesses: Industry

Mumbai, July 20 (AHN) The recently concluded India-United Kingdom Free Trade Agreement (FTA) is a landmark development that is expected to provide a major boost to Indian businesses across sectors, with benefits extending from large corporations to micro, small and medium enterprises (MSMEs), an industry body said on Monday.

Speaking exclusively to AHN, Indian Merchants' Chamber (IMC) President Prof. Mahendra Kumar Chouhan described the agreement as a "historic step" that would strengthen India's export ecosystem by creating opportunities across manufacturing and services while making exports more inclusive.

He said the FTA is expected to democratise exports by enabling businesses of different sizes and industries to tap the UK market. According to him, the benefits will not be confined to large companies but will also support medium-sized firms and MSMEs, helping them expand their global footprint.

Highlighting the sectors likely to gain the most, Chouhan said textiles and apparel, gems and jewellery, leather and leather goods, information technology, professional services and other labour-intensive industries stand to benefit significantly under the agreement.

He noted that India's globally recognised expertise in diamond cutting and polishing gives the country a strong competitive advantage in the gems and jewellery sector.

Similarly, India's skilled workforce in information technology, fintech, financial services and software engineering is well-positioned to increase its presence in international markets through improved access to the UK.

Chouhan said India's cost-efficient production, when combined with access to a high-income consumer market such as the United Kingdom, would enable domestic companies to achieve better value realisation for their products and services while enhancing their global competitiveness.

Speaking on the country's push for self-reliance, Chouhan cited aerospace startup Skyroot Aerospace as an example of India's growing indigenous technological capabilities.

He said the company's success in developing advanced rocket technology using indigenous innovation reflects the country's increasing emphasis on research, innovation and domestic technology development.

He added that the achievement of a young team of engineers and entrepreneurs demonstrates India's talent pool and should encourage more industries to invest in homegrown technologies and locally developed components.