India's Free Trade Agreement (FTA) with the UK has rules of origin and product-specific provisions in place, Commerce Secretary Sunil Barthwal said on Friday, pointing that clear safeguards have been included to prevent misuse of concessions, including transshipment by third-party countries.
“There are rules to take care of issues like transshipment. Third-party countries should not benefit,” he said, highlighting the focus on protecting domestic industry.
The pact, India's first major FTA in over a decade, also aims to address the long-standing tag of being a “tariff king” by bringing down India's average applied tariffs through mutually negotiated reductions, he said.
On the UK's side, the FTA eliminates duties on key Indian exports like gems and jewellery, giving Indian players a 4% edge over competitors such as Thailand, Hong Kong, and the UAE. Exports in this segment are projected to jump to $2.5 billion in the next three years.
In pharmaceuticals, a significant boost is expected via faster regulatory clearances under mutual recognition agreements between the Indian and UK regulators, especially in NHS procurement of APIs and high-end generics.
Officials noted that India has opened 89.5% of its tariff lines, covering 91% of the UK exports, but only 24.5% of them value will enjoy immediate duty-free access.
Strategically sensitive sectors like dairy, cereals, gold, and energy fuels have been excluded, while others will see phased tariff reduction over 5 to 10 years.
Barthwal further added that FTAs with the EU and a Bilateral Trade Agreement with the US are also in the pipeline, and they remain confident that a deal will "fructify".
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
