India-UK free trade agreement likely to be implemented from April

The IndiaUK free trade agreement is likely to come into effect from April this year paving the way for an increase in Indian exports to the European nation according to a senior official on SundayThe agreement was signed between the two countries in July last year and has to be now approved by the UK Parliament for it to come into effectThe process has already started with the debate on the Free Trade Agreement FTA having begun in the both Houses of the British ParliamentUnder the free trade agreement 99 per cent of Indian exports to the UK will get the benefit of zero duty This opens up massive export opportunities for labourintensive sectors such as textiles marine products leather footwear sports goods and toys gems and jewellery and other important sectors such as engineering goods auto parts and engines and organic chemicals according to an official statementBesides India has ensured that nontariff barriers are suitably addressed to ensure free flow of goods and services and that they do not create unjustified restrictions to Indias exportsPrime Minister Narendra Modi and his British counterpart Keir Starmer announced the successful conclusion of the mutually beneficial IndiaUK FTA in May last yearThe deal was sealed after PM Modi spoke to the UK Prime Minister on the phoneApart from the FTA a Double Contribution Convention has also been signed to take care of the interests of Indian workers in the UKThere will also be a significant boost to trade in services such as Information TechnologyInformation Technology Enabled Services financial services professional services other business services and educational servicesIndia has also secured an exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution ConventionThis will make Indian service providers significantly more competitive in the UKUnder the agreement tariffs on Scotch whisky will be reduced from 150 per cent to 75 per cent and further brought down to 40 per cent by 2035India will also gradually cut import duties on automobiles from up to 110 per cent to 10 per cent over five years under a quotabased system In return Indian manufacturers will receive market access in the UK for electric and hybrid vehicles within a quota frameworkThe FTA takes place in the backdrop of growing economic relations between India and the UK as exemplified in the bilateral trade of about USD 60 billion which is projected to double by 2030This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever