homeeconomy NewsTrade deal: Indian manufacturers look forward to selling cheaper apparels, booze in UK
Trade deal: Indian manufacturers look forward to selling cheaper apparels, booze in UK
In a recent interview with CNBC-TV18, Jayant Dasgupta, Former Ambassador of India to the World Trade Organisation, and Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies, delved into the prospects and challenges associated with the UK-India FTA.
As the UK and India inch closer to finalizing a free trade agreement (FTA), Indian manufacturers are gearing up for a potential boost in exports. Sectors producing labour-intensive goods, including apparel, footwear, and automobiles, anticipate significant advantages from the deal.
Yet, while the promise of reduced import duties beckons, some experts advise caution, noting that many Indian products already enjoy low tariffs in the UK.
Jayant Dasgupta, Former Ambassador of India to the World Trade Organisation, and Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies decoded the potential benefits in an interview with CNBC-TV18.
Following are the key takeaways from the discussion:
The textile sector's anticipated gains:
With the removal of import duties, Indian textiles, known for their quality and competitive pricing, stand to gain a stronger foothold in the UK market. This sector, a significant contributor to India's exports at nearly $5 billion, could witness a notable boost in its trade volume with the UK.
Support from the domestic alcohol industry:
A reduction in duties from the current 150% to 100% over the coming years, possibly even leading to a phased reduction to zero in the long term is widely anticipated. Such reduction could unlock new opportunities for Indian alcohol producers in the UK market.
On August 30th, Hina Nagarajan, the Managing Director of United Spirits, discussed with CNBC-TV18 the possible ramifications of a UK-India Free Trade Agreement (FTA) on the alcoholic beverages industry.
She said, "The impact could range from 5% to 15% depending on the maximum retail price (MRP) of the spirits." If this possible cut in duty is passed on to buyers, it could be good news for the entire industry. This could mean higher sales volumes.
According to Scotch whiskey associations interviewed by CNBC-TV18, 219 million bottles found their way to India in 2022, even with a hefty 150% import duty in place.
(with inputs from PTI)
For the entire discussion, watch the accompanying video
(Edited by : Shweta Mungre)
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