Bengaluru: The UK-India Free Trade Agreement (FTA) came into force recently. Describing it as a landmark development, Large and Medium Industries Minister M.B. Patil said the agreement was expected to provide a major boost to Karnataka’s biotechnology, pharmaceuticals, textiles and garments, marine products, engineering goods and machinery sectors.
He added that premium coffee grown in Chikkamagaluru and Kodagu, along with the State’s spice industry, would also stand to benefit.
The landmark agreement between India and the United Kingdom was signed on 25 July last year.
Patil was speaking at a commemorative gathering organised for industrialists to mark the agreement coming into force. He urged industry leaders to make the most of the opportunities created by the agreement and contribute to Karnataka’s industrial growth.
Under the agreement, 99 per cent of Indian products will gain duty-free access to the UK market. Nearly all the sectors in which Karnataka enjoys a competitive advantage fall within its scope.
Patil said the agreement’s Mode 1 services provisions would significantly benefit Bengaluru’s IT industry. He added that several British companies were expected to establish their Global Capability Centres (GCCs) in Bengaluru and Mysuru in the coming years.
Besides Bengaluru, Belagavi is also expected to benefit substantially from opportunities in the aerospace sector.
Patil said the agreement would reduce UK import tariffs on aerospace products from 11 per cent to zero, on automotive products from 110 per cent to zero, on electrical machinery from 22 per cent to zero, and on medical devices from 13.75 per cent to zero.
He added that tariffs on certain other products would also be phased out over the next five to six years.
He said exports of oilseeds, black pepper, cardamom, Byadagi and Devanur chillies, millets, flowers, fruits, vegetables, fish, coconut, mango, lemon, jasmine, marigold, premium coffee from Kodagu and Chikkamagaluru, and processed agricultural and food products manufactured in Hassan, Bidar and Bengaluru Urban districts would no longer attract import duties in the UK market.
Patil said the FTA would also benefit small industries. To help them make the most of its provisions, the government will conduct a dedicated awareness programme for Karnataka’s coffee growers, garment manufacturers and MSME exporters.
He said Karnataka would further strengthen partnerships with the United Kingdom in aerospace and defence, advanced manufacturing, electric mobility, clean energy, semiconductors, deep-tech and Global Capability Centres (GCCs).
The State will also organise investment roadshows in the UK to attract British investors, he added.
A British education, in Karnataka
Speaking on the occasion, British Deputy High Commissioner Chandru Iyer said leading UK universities, including the University of Liverpool, Lancaster University, Birkbeck, University of London, and Imperial College, London, were set to establish campuses in Karnataka.
He also said that The King’s School, Canterbury, and RGS Guildford would establish school campuses in the State.
He said there were currently 34 direct flights every week between Bengaluru and London, and the frequency was expected to increase further in the coming years.
Export consignment flagged off
Earlier, Iyer flagged off a consignment of Jindal aluminium and electronic products bound for the United Kingdom from the Inland Container Depot at Whitefield in Bengaluru.
