The U.K.-India Free Trade Agreement (FTA) has officially come into effect, and Karnataka exporters have flagged off consignments to mark the occasion. Large and Medium Industries Minister M.B. Patil described the agreement as a landmark development that is expected to provide a significant boost to various sectors in Karnataka, including biotechnology, pharmaceuticals, textiles, and garments.
The agreement is expected to benefit Karnataka’s premium coffee growers in Chikkmagaluru and Kodagu, as well as the state’s spice industry. British Deputy High Commissioner Chandru Iyer flagged off a consignment of Jindal aluminium and electronic products bound for the United Kingdom from the Inland Container Depot at Whitefield in Bengaluru. Under the agreement, 99% of Indian products will gain duty-free access to the UK market, with nearly all sectors in which Karnataka enjoys a competitive advantage falling within its scope.
According to Minister Patil, exports of various products, including oilseeds, black pepper, cardamom, and processed agricultural and food products, will no longer attract import duties in the UK market. The agreement will also reduce UK import tariffs on aerospace products, automotive products, electrical machinery, and medical devices. Tariffs on certain other products will be phased out over the next five to six years.
The agreement is expected to benefit not only large industries but also the IT sector and micro, small, and medium enterprises (MSMEs). The Mode 1 services provisions will significantly benefit Bengaluru’s IT industry, with several British companies expected to establish their Global Capability Centres (GCCs) in Bengaluru and Mysuru. Belagavi is also expected to benefit substantially from opportunities in the aerospace sector.
The Karnataka government plans to further strengthen partnerships with the United Kingdom in various sectors, including aerospace and defence, advanced manufacturing, electric mobility, clean energy, semiconductors, and deep-tech. The state will also organise investment roadshows in the UK to attract British investors and conduct awareness programmes for coffee growers, garment manufacturers, and MSME exporters.
