en.Wedoany.com Reported - The India-UK Comprehensive Economic Trade Agreement (CETA) has taken effect, eliminating tariffs on 1,143 textile tariff lines, which previously carried duties of up to 12%. Under the agreement, 99% of Indian goods entering the UK and 90% of UK goods entering India will enjoy duty-free or reduced-tariff treatment, expected to boost bilateral trade by £25.5 billion annually, increase India's GDP by £5.1 billion per year, and the UK's GDP by £4.8 billion per year.
India's Ministry of Commerce and Industry noted that the affected tariff lines account for 11.7% of the sector's exports. India hopes this change will improve its competitive position relative to suppliers from Bangladesh, Pakistan, and Cambodia, which already enjoy duty-free access to the UK. India is currently the UK's fourth-largest textile supplier, with a market share of 6.1% and annual exports of approximately $1.79 billion, while the UK's textile and apparel imports exceeded $28.8 billion last year. CETA is expected to provide a significant boost to Indian garment manufacturers. India's Ministry of Commerce stated on social media that the agreement opens new avenues for textile exporters, achieving zero-tariff access on 1,143 tariff lines, eliminating tariff disadvantages and enhancing competitiveness in the UK market; it holds great potential in garments, home textiles, carpets, and handicrafts, helping Indian textiles expand their global footprint and consolidate India's position as a leading textile supplier. The agreement also introduces simplified customs procedures, removing the mandatory requirement to use customs brokers, allowing businesses to obtain preferential rates simply by registering with HM Revenue and Customs. Harjinder Kang, UK Trade Commissioner for South Asia and Deputy High Commissioner to West India, stated that this is a watershed moment for the UK-India partnership, with this landmark trade agreement designed to benefit businesses and consumers from day one, making trade cheaper, faster, and more convenient.
