India-UK FTA: A New Dawn for Indian Trade

The recently signed India-UK Free Trade Agreement (FTA) marks a milestone opportunity for India, according to Sanjay Nayar, President of ASSOCHAM and Founder-Chairman of Sorin Investment Fund. Nayar emphasized the necessity for the private sector to shift focus from cost to quality and innovation, leveraging reduced tariffs to bolster exports.

In an interview with ANI, Nayar highlighted the need for Indian companies to meet global compliance standards, aiming for success in developed markets. He spotlighted sectors like defense startups, med-tech, and agro-tech as beneficiaries of the FTA, which cuts tariffs on 99% of goods, creating a level playing field.

The agreement requires companies to invest in compliance and international certification, crucial for accessing sophisticated regulatory frameworks. Nayar acknowledged challenges like high logistics costs and scarce production factors but praised government initiatives such as PM GatiShakti for infrastructure improvement.

Despite the government's negotiation success, Nayar expressed concern over the private sector's commitment to scaling up operations and the modest response to previous incentives. Establishing a market presence in the UK, through local partnerships and joint ventures, is essential for accessing public procurement markets opened by the FTA.

Nayar cautioned companies about dealing with complex regulatory environments in developed markets, recommending government and chamber of commerce support for MSMEs. The FTA, celebrated during Prime Minister Narendra Modi's UK visit, aligns with India's Viksit Bharat 2047 vision, aiming to boost India-UK trade to USD 120 billion by 2030.