Govt to use UK FTA window to boost industry capacity

Currently, Indian exporters have less than 2% share in over $564 bn goods market

- Rajeev Jayaswal

The government will utilise a one-year window available in operationalisation of the India-UK free trade agreement in augmenting capacity of domestic industry to tap full potential of the FTA, commerce secretary Sunil Barthwal said, as Indian exporters currently have less than 2% share in over $564 billion goods market comprising only 17 key sectors.

The legislative process to pass the trade deal in the both houses of the British Parliament may take about a year, the commerce secretary said on Friday.

“We will utilise this period for the capacity building process for our exporters,” he said, pointing at the huge competitive advantage offered by the FTA that was signed on Thursday. While ratification of FTA involves a complex legislative process in the UK, the procedure is quick in India that requires the cabinet’s approval.

A quick analysis of 17 key sectors, including textiles, leather and footwear, gem and jewellery, chemicals, auto parts, machineries, plastic, surgical instruments, minerals, agri-products, sports goods and pharmaceuticals reflected huge potential of Indian exports to the UK. Cumulatively, they comprise over $564 billion of the British imports from across the world, where India’s contribution is only about $8.6 billion, according to the government and the industry data.