The Free Trade Agreement between India and the United Kingdom will come into force from July 15 onwards and is expected to benefit Indian farmers, fisherfolk, Commerce Secretary Rajesh Agrawal said during a presser on Tuesday.
Terming it as the 'gold standard' for FTA, Agrawal said that it comprehensively covers sectors and deeply cuts tariffs and non-tariff barriers. As part of the deal, 98% of goods from India can enter the UK without any duty starting tomorrow.
According to the Commerce Secy, the FTA will spell gains for a lot of sectors and occupational communities such as the farmers and fisherfolk as it opens wider access in various segments. Duties as high as 12% coming down to 0%.
Additionally, the FTA will protect sensitivities in various Indian sectors with duties on Textile, leather and footwear, electrical machinery, auto parts being abolished from as high as 18% earlier.
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Agrawal also pointed out that Indian employees in the UK spend 25% of their salaries in social security to the UK and that this is like a sunk cost for certain employees. After the FTA comes into effect, employees would be able to pay their social security payments in India and avoid double payments.
Commenting on the FTA, Commerce and Industry Minister Piyush Goyal had said that the agreement goes beyond trade in goods and services by introducing a Double Contribution Convention (DCC), which exempts Indian professionals working in the UK for up to five years from contributing to the country's social security system.
According to Goyal, the trade agreement is expected to open up fresh opportunities for Indian professionals while strengthening economic and commercial engagement between India and the UK.
The minister also mentioned that the pact would ease the financial burden on Indian professionals employed in Britain through the DCC provision.
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