Introduction:

India’s Free Trade Agreement (FTA) with the United Kingdom is a landmark development aimed at boosting bilateral trade in an increasingly protectionist global environment. While the FTA promises enhanced market access and ease of movement for professionals, concerns remain about its impact on Indian farmers and small producers.

Body:

A. Key Opportunities from the India-UK FTA:

1. Zero-duty Access:
   
   

• 99% of Indian exports to the UK to attract zero tariffs.
  
  
• Sectors like engineering goods, gems & jewellery, and apparel to benefit.
  
  

1. Boost to Bilateral Trade:
   
   

• Trade projected to reach $120 billion by 2030.
  
  
• Engineering exports alone expected to rise to $7.5 billion by 2029-30.
  
  

1. Labour Mobility Gains:
   
   

• Easier entry for Indian professionals and workers.
  
  
• UK to allow temporary visa exemptions from social security contributions.
  
  

1. Investment Facilitation:
   
   

• Likely to improve investor sentiment and FDI inflow from the UK into India.
  
  

B. Challenges and Cautions:

1. Impact on Indian Agriculture:
   
   

• Farmers’ bodies fear that low-cost UK imports may hurt domestic producers.
  
  
• India’s low-income, low-margin farmers vulnerable to international price shocks.
  
  

1. Reduction in Tariffs:
   
   

• India to cut tariffs on 90% of UK goods, 85% to be eliminated within a decade.
  
  
• Concerns that this may not meaningfully benefit India due to limited UK demand for farm produce.
  
  

1. Uneven Gains:
   
   

• While UK exporters benefit from India’s large market, Indian exporters may face non-tariff barriers in the UK.
  
  
• Examples from past FTAs (e.g., UAE, CEPA) show mixed results for India’s trade balance.
  
  

1. Premiumisation Threat:
   
   

• UK exports like whiskey and gin may gain market share, possibly slowing Make in India spirits sector.
  
  

C. Way Forward:

1. Safeguard Farmers’ Interests:
   
   

• Include safeguard clauses or exclusion lists for sensitive agricultural items.
  
  
• Provide MSME and farm support schemes to offset competition.
  
  

1. Balanced Negotiation Strategy:
   
   

• Ensure reciprocal market access and address non-tariff barriers.
  
  

1. Monitoring and Review Mechanism:
   
   

• Regular FTA reviews to ensure the deal adapts to ground-level economic realities.
  
  

1. Awareness and Capacity Building:
   
   

• Equip Indian exporters with tools to meet UK standards and certifications.
  
  

Conclusion:

The India-UK FTA holds strong potential to deepen trade and strategic ties, but the path must be tread carefully. India must avoid past mistakes by prioritising vulnerable sectors, particularly agriculture, ensuring that trade liberalisation supports equitable growth. Caution and optimism must go hand in hand.