India-UK Free Trade Agreement: A Double-Edged Sword for Kerala's MSMEs
The free trade agreement between India and the UK offers new prospects and challenges for Kerala's MSMEs. While tariff-free access to the UK market could enhance exports, increased competition may challenge smaller enterprises. The state's focus is on modernizing and adapting to global markets for comprehensive development.
- Country:
- India
The landmark free trade agreement between India and the UK could revolutionize Kerala's Micro, Small and Medium Enterprises (MSME) sector, but not without hurdles, said state Industries Minister P Rajeev on Wednesday.
Kerala stands to benefit from tariff-free access to the UK for key products like apparel and marine goods, enhancing global competitiveness, he told the Assembly. Opportunities in exporting coffee, tea, and spices are likely, along with job creation and modernization.
Yet, the minister cautioned that increased competition and production costs from the UK might impact micro-small-scale industries, necessitating technical updates to stay viable globally. The government is thus implementing a 'smart economy' approach for comprehensive small-scale industry development.
(With inputs from agencies.)
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