Auto to textiles, India Inc hopes to reap benefits

Medical-device makers apprehensive due to the China factor

- BS REPORTERS

Bilateral trade between India and the United Kingdom (UK) will increase by 25.5 billion pounds with the sealing of their free-trade agreement (FTA), and it is expected to benefit sectors such as textiles, marine products, leather, gems and jewellery, footwear, and engineering goods, said companies and industry experts.

It may also give an impetus to trade in services: Information technology, finance, and education.

Trade between the two nations in 2024 stood at 42.6 billion pounds.

However, some segments like medical devices raised concern over the possibility of the UK becoming a transshipment hub for Chinese products.

Analysts say in the textiles sector alone, India's export could double from $1.4 billion now. Tariffs on whisky and gin will be halved from 150 per cent to 75 per cent before reducing to 40 per cent by the 10th year of the deal.

Indian automobile companies with their arms in the UK—like Tata Motors and TVS Motor—are expected to benefit from common supply chains.