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COVER STORY AUGUST 01, 2025 | The Indian Eye 5

Indian goods more price-competitive lations, visa norms, and pharmaceuti-
than those from China, Vietnam, and cal pricing.
Bangladesh. Farmers and fishers, too, In addition, domestic political re-
are set to gain from the UK’s $5.4 bil- sistance in both countries has played
lion marine import market and pref- a role. In the US, bipartisan concerns
erential access to agriculture exports. over labor rights and environmental
Farmers in India are among the standards have made FTAs a hard
major winners as they are set to get sell. In India, vocal industry lobbies
preferential access to UK’s agricul- and political groups remain skeptical
tural market -- pegged to be around of opening sensitive sectors to foreign
USD 37.5 billion -- with the signing competition.
of the landmark India-UK Free Trade Still, business leaders and trade
(FTA) Agreement. experts argue that a US-India trade
Post the formalisation of the FTA, deal remains essential. With bilater-
it is expected to open premium mar- al trade nearing $200 billion, the ab-
kets in the UK for Indian produce, sence of a formal agreement leaves
offering similar or even better benefits several sectors—especially services
than those enjoyed by exporters from and digital commerce—exposed to
European countries like Germany uncertainties and non-tariff barriers.
and the Netherlands.
Indian staples such as turmeric, THE ROAD AHEAD
pepper, and cardamom, along with Union Minister of Commerce and Industry Piyush Goyal and Secretary of State for Business
processed products like mango pulp, and Trade, Jonathan Reynolds, S. Jaishankar, Minister of External Affairs and Rachel Reeves, hat the India-UK FTA rep-
pickles, and pulses, will get duty-free Chancellor of the Exchequer in a picture after the signing of the India-UK Comprehensive resents, then, is a turning
access, improving their margins and Wpoint—not just diplomat-
market reach. Over 95 per cent of In- Economic and Trade Agreement [CETA], in London on Thursday. (DPR PMO/ANI Photo) ically, but philosophically. India is
dia’s agricultural and processed food shedding its protectionist shell and
tariff lines will face zero duties once in areas like digital trade, data local- creasingly wary of asymmetric trade engaging with the global trade system
the agreement is enforced. ization, intellectual property rights, deals. Officials cite the lopsided out- on more confident terms. At the same
These include fruits, vegetables, and agriculture, New Delhi remains comes of past FTAs, particularly with time, it is drawing clear red lines.
cereals, spice mixes, fruit pulps, ready- cautious. Concerns over data sover- ASEAN and South Korea, as a reason Sensitive sectors like dairy, wheat,
to-eat meals, and more. This move eignty, domestic regulatory flexibility, for their cautious stance. As a result, apples, and cooking oils have been
will reduce the landed cost of these and farmer protections have slowed India pulled out of RCEP in 2019 and kept out of the UK FTA. In intellectu-
goods in the UK and enhance their progress. has since recalibrated its approach to al property, India accepted language
competitiveness. Moreover, the US is no longer trade—prioritizing ‘fair and balanced’ aligning with global norms, but avoid-
The FTA will help Indian agricul- aggressively pursuing bilateral FTAs. agreements that serve domestic inter- ed commitments that could compro-
ture sector transition from focus on Its trade strategy has shifted toward ests. mise its public health safeguards. In
high volume to high value products, regional frameworks like the Indo-Pa- Political dynamics further com- services, India has selectively liberal-
and from catering to local markets to cific Economic Framework (IPEF), plicate the India-US trade equation. ized key sectors like telecom, insur-
expanding globally. which emphasizes standards, digital While the two nations have strength- ance, and auditing, while protecting
India has also ensured that the governance, and supply chain resil- ened ties in defense and technology legal services and domestic employ-
FTA fully protects sensitive sectors ience over tariff reduction. under strategic initiatives like QUAD, ment standards.
like dairy, vegetables, apples, cooking India, for its part, has grown in- friction remains on e-commerce regu- The government insists that each
oils, oats. There will be no tariff con- deal it signs will be a “win-win.” As
cessions on these commodities. Commerce Minister Piyush Goyal
Further, in what could be termed recently said, “India is open to the
as a “big catch” for Indian fish farm- world—but on our terms.”
ers, the USD 5.4 billion UK market This strategic duality—openness
also got opened up for marine exports with caution—will likely define India’s
as UK import duty on marine prod- trade trajectory in the coming years.
ucts are set to fall to zero from up to FTAs with the EU, New Zealand,
20 per cent. and others are already on the horizon.
Both nations desire to increase And while the US deal remains on ice,
their trade to USD 120 billion by 2030. India is not waiting.
By methodically unlocking mar-
STRATEGIC SHIFT? ket access, India is not only building
bridges to new economies—it is build-
mid this expansion, one deal ing confidence at home. The message
remains elusive—the long-dis- is clear: India is ready to lead, not just
Acussed India-US Free Trade participate, in shaping the global trade
Agreement. Despite multiple rounds agenda.
of talks and high-level meetings over From manufacturing to mobility,
the past decade, a comprehensive agriculture to artificial intelligence,
agreement has yet to materialize. The India is embedding itself into the
reasons are manifold. Prime Minister Narendra Modi and Prime Minister of the United Kingdom, Keir Starmer have world’s economic bloodstream. And
Firstly, India and the US have di- tea during a business event following the signing of the historic India-UK Comprehensive in doing so, it is not just negotiating
vergent expectations. While Washing- Economic and Trade Agreement [CETA], in London on Thursday. (DPR PMO/ANI Photo) trade agreements—it is negotiating
ton pushes for broader liberalization the terms of its own rise.

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