India-UK Free Trade Agreement (FTA) agreed last month has been termed as a game changer by Union Commerce and Industry Minister Piyush Goyal, as he added that it meets the economic priorities of India without compromising on sensitive sectors, last month. Addressing the media on Saturday, Goyal stressed that the deal that was signed on Thursday after more than 20 years of negotiations was on the terms of India alone.
The deal was signed by Prime Minister Narendra Modi and the UK Prime Minister Keir Starmer. Although the cabinet has approved the deal, in the United Kingdom the deal is yet to pass through a parliamentary review. This, according to Goyal, is the widest FTA India has ever signed and will greatly benefit trade, especially the services, labor-intensive manufacturing, and export of spices, leather, furniture, and pharmaceuticals.
Goyal mentioned the protective measures as the sensitive industries like dairy, agriculture does not fall under the deal, as seen in countries that signed the FTA with previous governments. He owed this to the leadership of Modi who made India go to the negotiation table with confidence and focus on complementary trade instead of competition.
Among the most important characteristics of the deal is access to preferential market entry into the UK by 99% of exports that India was to make without any duty payable. UK products will, on the other hand, also enjoy reduced barriers, although with protection to the domestic industries in India. Such goods as spices and fisheries will have duty-free entrance and that will be of the benefit to millions of Indian producers.
Further, Goyal identified the effect of the agreement on the sector on services, by the reference to the double contribution convention. The provision helps Indian professionals employed in UK avoid simultaneous contributions with regard to contributory and voluntary social security payments and this helps them enjoy benefits despite their having shorter employments. He claimed that the FTA is a sign of India increasingly strong economic power and confidence in the world.
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