India-UK free trade agreement 'game-changing', every section stands to benefit: Goyal

Union Minister for Commerce and Industry Piyush Goyal on Saturday termed the India-UK free trade agreement as ''game-changing'' and said that it will benefit every section, including the farmers, youths, entrepreneurs and MSMEs.

The India-UK Free Trade Agreement (FTA), also called Comprehensive Economic and Trade Agreement, was signed by Goyal and his counterpart Jonathan Reynolds in the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer on Thursday.

Addressing a press conference at the party headquarters here, Goyal attributed the successful signing of the FTA to Prime Minister Modi's leadership.

''It is a game-changing agreement,'' he said, adding that it will bring ''immense opportunities'' to India's farmers, entrepreneurs, MSMEs (micro, small and medium enterprises), youths, fishermen, and every sections of the society.

India would be able to ship 99 per cent of its exports to the UK duty-free, he added.

Goyal asserted that the agreement was signed with the UK ''confidently'' on India's terms while protecting ''sensitive items'' in agriculture and dairy sectors.

''We have protected many of our sensitive items like rice and sugar. Dairy has not been opened, so is ethanol. India has kept itself safe in the areas that are sensitive. No duty concession has been given (in these areas),'' he added.

''I believe that this FTA carries a very big message for the future economy of India. We will all see the benefits that India will get under it in the coming years,'' he said.

Goyal said that when the Congress-led United Progressive Alliance (UPA) was in power, they used to signed FTAs with ASEAN countries that ''were competing with us''.

''They used to open our markets to such countries and impose zero duty. Those countries used to sell their goods cheaply in India and harm India's manufacturing,'' Goyal said.

''Many business organisations, chambers and MSME leaders have said multiple times that the kind of FTAs that were signed during the UPA were not in the interest of the country,'' he added.

Citing the recent Prada-Kolhapuri sandal row, the minister said that with the implementation of the FTA with the UK, India will get the credit for its GI (Geographical Indication) products.

''Someone used the design of our Kolhapuri sandal. The commerce ministry immediately took action on it. In future, when Kolhapuri sandals are exported, India will get the credit. It will be exported as India's GI product,'' he said.

Big international companies are expressing desire to associate themselves with Indian products, he added.

Goyal also termed the signing of a Double Contribution Convention Agreement with the UK as a ''big achievement'' for India, saying that the Indian service sector is set to ''hugely benefit'' from it.

''Whosoever now goes to the UK for a short-term service as an inter-corporate transferee -- whether it is in software services, hotels or to work as yoga instructors -- a part of their earnings will now be deposited in their EPFO (Employees Provident Fund Organisation) account,'' he said.

Replying to a question on the India-UK FTA not having any provision on Britain's proposed carbon tax, Goyal said that he thinks ''it is a non-issue''.

''They have already made it quite flexible. They have liberalised it,'' he told reporters.

In December 2023, the UK government had decided to implement its Carbon Border Adjustment Mechanism (CBAM) from 2027.

Goyal said that the ''entire Europe and industries'' there are worried about the CBAM because its implementation will make the continent so expensive. Stating that India is the only country that is progressing ''very fast'' in terms of the environment, he said, ''Whoever takes any step against our interests or our trade in the form of non-tariff barrier, we will respond accordingly.'' ''We have purified our 2030 targets in 2025. So, I think we do not have to fear these issues. If any such issue that will harm India's interests, then India is capable of responding to it,'' he asserted.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)