Latest news with #Barthwal
Time of India
4 days ago
- Business
- Time of India
‘Balancing strengths-sensitivities': India secures safeguards for key sectors in UK FTA; import access to be phased
Representative image (TOI) Only around one fourth of the UK's exports by value will receive immediate duty-free access to the Indian market, with most sensitive sectors remaining safeguarded, the government said on Friday, according to ET. Commerce secretary Sunil Barthwal, addressing the media, explained that product-specific rules of origin have been established. These include value-addition requirements designed to prevent transshipment and block third-country goods from benefiting under the deal. India has protected several sensitive sectors under the trade deal, including dairy, cereals, millets, pulses, vegetables, and high-value products such as gold, jewellery, lab-grown diamonds, and certain essential oils. Key exclusions also cover critical energy fuels, marine vessels, used clothing, important polymers and their monofilaments, smartphones, and optical fibres, reported ET. For strategically important goods, especially those where domestic manufacturing is being strengthened under the 'Make in India' and production-linked incentive (PLI) schemes, tariff concessions will be phased in gradually over five, seven, or ten years. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Historic Figures Who Were Actually Photographed Gloriousa Undo India and the UK signed the comprehensive economic and trade agreement (CETA) on July 24, following years of discussions and negotiations. Barthwal noted that this agreement stands apart from India's previous free trade deals, as it reflects the country's evolution into a more mature economy. He added that India is now engaging in areas previously untouched in past trade agreements, marking its shift toward developed nation status. Working between strengths and sensitivities The agreement strikes a balance between "sensitivities and strengths," the official said, reported ET. 'We wanted to shed the label of 'tariff king,' and FTAs are a way to achieve that,' said commerce secretary Barthwal. 'FTAs bring a lot of certainty and predictability to businesses which this UK FTA will ensure. FTAs are give and take and when we build a narrative, we are sensitive that it's not one-sided.' Barthwal also mentioned past comments by US President Donald Trump, who had called India a "tariff king," and referenced ongoing negotiations with both the US and the European Union, as quoted by ET. 'Detailed talks are happening in the EU FTA. Talks with the US are going on, it will fructify,' he said. Barthwal said the India-UK partnership is rooted in fair play, equity, and mutual benefit. 'We protected our sensitivities and they protected theirs. This FTA has been a balance of sensitivities and strengths,' he stated. Calling it a complex and comprehensive agreement, Barthwal added, 'our defensive interests have been taken care of.' He noted that while the UK may take under a year to ratify the CETA, India will use that time to build the capacity of its exporters and educate them on how to leverage the deal. The government is also working with state governments and export promotion councils to assess how they will be affected. 'We are doing granular studies,' he said. India and the UK have agreed to negotiate mutual recognition agreements (MRAs) to facilitate the movement of professionals such as nurses, accountants and architects to Britain. 'Non-tariff barriers will be eased, and regulatory systems and MRAs would be improved,' Barthwal said, reported ET. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
4 days ago
- Business
- Time of India
Pharma cos get access to UK's NHS procurement plan
This is a representative AI image (Pic credit: Lexica) NEW DELHI: The India-UK Comprehensive Economic & Trade Agreement (CETA) provides Indian pharma companies access to the procurement programme of the National Health Scheme and other govt agencies, which are estimated to be to the tune of $122 billion. NHS in England alone buys medicines of $25 billion in addition to medical devices, which can now be tapped by Indian companies that would be treated on a par with their UK counterparts under govt procurement chapter of CETA. "The agreement opens govt procurement in both countries... The agreement is mutually beneficial for both the economies," commerce secretary Sunil Barthwal said at a press conference. India is eyeing major gains in pharmaceuticals sectors, where its exports are under $1 billion. Barthwal said that CETA will also help address regulatory concerns faster as mechanisms have been put in place and offer predictability for businesses in the long run. After the UAE, the UK pact is the second trade agreement that India signed with a chapter on govt procurement. The agreement, however, restricts the participation of British companies in tenders above Rs 5.5 crore and only to those issued by the Centre. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Anne Hegerty And Her Partner, Who You Will Easily Recognize Sport Pirate Undo India and the UK are looking to more than double bilateral trade to $112 billion by 2030 with both sides deciding to lower tariffs significantly. Currently, 48.2% of India's exports by value (47.3% of tariff lines) enter the UK at zero duty under the MFN regime. With the FTA, the coverage will be 99% of the goods and 100% of the value. On its part, India has opened 89.5% of its tariff lines, covering 91% of the UK's exports. But only 24.5% of the UK's export value will enjoy immediate duty-free market access with the rest of the cuts staggered over five to 10 years to provide adequate time for domestic industry to adjust. Barthwal said that the negotiations have kept in mind the future growth path of the economy and the tariff adjustments are nuanced. The India-UK free trade agreement, however, does not include a provision on Britain's proposed carbon tax, but if such a tax is imposed in the future, India will have the right to take steps to mitigate its impact on domestic exports, sources said on Friday. Govt on Friday said that it has stuck to India's stance on intellectual property rights, including the patent regime and the outcome in CETA represented a "balanced and forward-looking approach". "It strengthens cooperation while preserving India's sovereign rights in matters of patent policy and access to essential medicines," it said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
4 days ago
- Business
- Economic Times
India ensures safeguards for sensitive sectors in UK FTA
India and the UK signed a Comprehensive Economic Trade Agreement (CETA) on July 24 after years of meetings and consultations. New Delhi: Only about a fourth of the UK's exports by value will enjoy immediate duty-free access to the Indian market, while most of the sensitive sectors have been protected, the government said on Friday. Briefing the media on Friday, commerce secretary Sunil Barthwal said product-specific rules of origin have been put in place. These stipulate value-addition norms that don't allow transshipment or third-country benefits. India has safeguarded its sensitive sectors - from dairy, cereals and millets, pulses and vegetables, to high-value items like gold, jewellery, lab-grown diamonds and certain essential energy fuels, marine vessels, worn clothing, and critical polymers and their monofilaments, smartphones, and optical fibres are also excluded. For strategically important products, particularly those where domestic capacity is being built under Make in India and production-linked incentive schemes, concessions are being provided over periods of five, seven and 10 years. India and the UK signed a Comprehensive Economic Trade Agreement (CETA) on July 24 after years of meetings and accord with the UK differs from other free trade agreements as it reflects India's transition to a more mature economy, said Barthwal. India will enter areas that hadn't been touched upon in other trade deals as it transitions to developed country status, he said. The accord balances 'sensitivities and strengths,' the official said.'We wanted to remove the tag of tariff king and FTA is a way to do that,' Barthwal said. 'FTAs bring a lot of certainty and predictability to businesses which this UK FTA will ensure. FTAs are give and take and when we build a narrative, we are sensitive that it's not one-sided.' US President Donald Trump had referred to India as a tariff king. Barthwal also referred to negotiations with the US and the European Union.'Detailed talks are happening in the EU FTA. Talks with the US are going on — it will fructify,' he India-UK friendship is based on fair play, equity and mutual benefit, the commerce secretary said. 'We protected our sensitivities and they protected theirs. This FTA has been a balance of sensitivities and strengths. It's a complex and comprehensive deal… Our defensive interests have been taken care of,' he UK may take less than a year to ratify the CETA and India will use that time for building the capacity of its exporters and educating them on how to benefit from the accord. The government is conducting an exercise with states and export promotion councils on how they will be impacted.'We are doing granular studies,' he said. India and the UK have agreed to negotiate mutual recognition agreements (MRAs) to facilitate the movement of professionals such as nurses, accountants and architects to Britain. 'Non-tariff barriers will be eased, and regulatory systems and MRAs would be improved,' Barthwal said. Scotch, cars Barthwal said that Scotch is a GI (geographical indication) product, and there is always a production limit. The duty on Scotch whisky will be reduced to 40% over 10 duty cuts, up to 75% over 10 years, have been offered on other alcoholic beverages, with concessions applicable only above a set minimum import price — $6 for bottled and $5 for bulk whisky. The FTA will help in exports of Indian blended whisky, he added.'Indian malt whisky is blended with imported Scotch. So, when bulk whisky comes, it's like an intermediate product,' the official terms of market access to automobiles, India has committed to a calibrated, phased, and development-oriented quota-based liberalisation strategy. Under this, a total annual quota of up to 37,000 cars has been provided at a reduced tariff, with a graded structure for both quota and concessions have been given to electric vehicles, hybrids and hydrogen-powered cars in the first five years.
Time of India
4 days ago
- Business
- Time of India
India ensures safeguards for sensitive sectors in UK FTA
New Delhi: Only about a fourth of the UK's exports by value will enjoy immediate duty-free access to the Indian market, while most of the sensitive sectors have been protected, the government said on Friday. Briefing the media on Friday, commerce secretary Sunil Barthwal said product-specific rules of origin have been put in place. These stipulate value-addition norms that don't allow transshipment or third-country benefits. 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Test Now! Try Now Undo Critical energy fuels, marine vessels, worn clothing, and critical polymers and their monofilaments, smartphones, and optical fibres are also excluded. For strategically important products, particularly those where domestic capacity is being built under Make in India and production-linked incentive schemes, concessions are being provided over periods of five, seven and 10 years. Live Events India and the UK signed a Comprehensive Economic Trade Agreement (CETA) on July 24 after years of meetings and consultations. The accord with the UK differs from other free trade agreements as it reflects India's transition to a more mature economy, said Barthwal. India will enter areas that hadn't been touched upon in other trade deals as it transitions to developed country status, he said. 'Balancing Strengths and Sensitivities' The accord balances 'sensitivities and strengths,' the official said. 'We wanted to remove the tag of tariff king and FTA is a way to do that,' Barthwal said. 'FTAs bring a lot of certainty and predictability to businesses which this UK FTA will ensure. FTAs are give and take and when we build a narrative, we are sensitive that it's not one-sided.' US President Donald Trump had referred to India as a tariff king. Barthwal also referred to negotiations with the US and the European Union. 'Detailed talks are happening in the EU FTA. Talks with the US are going on — it will fructify,' he said. The India-UK friendship is based on fair play, equity and mutual benefit, the commerce secretary said. 'We protected our sensitivities and they protected theirs. This FTA has been a balance of sensitivities and strengths. It's a complex and comprehensive deal… Our defensive interests have been taken care of,' he said. The UK may take less than a year to ratify the CETA and India will use that time for building the capacity of its exporters and educating them on how to benefit from the accord. The government is conducting an exercise with states and export promotion councils on how they will be impacted. 'We are doing granular studies,' he said. India and the UK have agreed to negotiate mutual recognition agreements (MRAs) to facilitate the movement of professionals such as nurses, accountants and architects to Britain. 'Non-tariff barriers will be eased, and regulatory systems and MRAs would be improved,' Barthwal said. Scotch, cars Barthwal said that Scotch is a GI (geographical indication) product, and there is always a production limit. The duty on Scotch whisky will be reduced to 40% over 10 years. Limited duty cuts, up to 75% over 10 years, have been offered on other alcoholic beverages, with concessions applicable only above a set minimum import price — $6 for bottled and $5 for bulk whisky. The FTA will help in exports of Indian blended whisky, he added. 'Indian malt whisky is blended with imported Scotch. So, when bulk whisky comes, it's like an intermediate product,' the official said. In terms of market access to automobiles, India has committed to a calibrated, phased, and development-oriented quota-based liberalisation strategy. Under this, a total annual quota of up to 37,000 cars has been provided at a reduced tariff, with a graded structure for both quota and concessions have been given to electric vehicles, hybrids and hydrogen-powered cars in the first five years.
Indian Express
4 days ago
- Business
- Indian Express
India not ‘tariff king', says Commerce Secretary Sunil Barthwal
Commerce Secretary Sunil Barthwal on Friday said that India can face competition and is not the 'tariff king', as India's average tariffs for the UK following the trade deal are set to drop to 3 per cent compared to the current levels of 15 per cent. Barthwal said at a press briefing that India and the UK have managed to strike the 'right balance between strengths and sensitivities', and that the government will begin capacity-building of exporters to make full use of the tariff concessions achieved in the UK trade deal. 'FTAs are done, but the gains from the concessions can only come through stakeholder involvement. We have got concessions in textiles, leather footwear and processed footwear sectors, where tariffs were as high as 70 per cent. Now, the Commerce and Industry Ministry will begin capacity-building of our exporters,' Barthwal said. Barthwal said that fears of dumping are unfounded, as the trade deal has rules of origin and product-specific rules in place to address such concerns, adding that the deal is expected to be ratified by the UK government within a year, as it must pass through both Houses of the British Parliament. 'The regulatory ecosystem between the two countries will also be improved. In this FTA, there are timelines as to when the mutual recognition agreement is supposed to be completed. This will improve certainty for businesses operating in both countries,' Barthwal said. Government officials said that India's major exports — from labour-intensive sectors like textiles, gems & jewellery, leather and footwear, machinery, pharmaceuticals, and processed foods — are set to gain a major edge with zero-duty access to the UK, improving the competitiveness of Indian goods in the UK market. 'The UK market opens up duty-free for nearly all Indian agri-exports, with just a few limited exceptions like pork, chicken, eggs, rice, and sugar. A golden opportunity for our farmers and agri-entrepreneurs to shine on a global stage,' the Commerce and Industry Ministry said. The ministry said India has safeguarded its sensitive sectors — dairy, cereals and millets, pulses, and vegetables to high-value items like gold, jewellery, lab-grown diamonds, and certain essential oils. 'Strategic exclusions also cover critical energy fuels, marine vessels, worn clothing, and critical polymers and their monofilaments, smartphones, optical fibres — a strong stand to protect farmers, MSMEs, and national interests,' the ministry said. Notably, India has opened 89.5 per cent of its tariff lines, covering 91 per cent of the UK's exports, and only 24.5 per cent of the UK's export value will enjoy immediate duty-free market access. 'Strategically important products — particularly those where domestic capacity is being built under flagship initiatives like Make in India and PLI — will see concessions over periods of 5, 7, or even 10 years with gradual tariff reduction,' the ministry said. Joint Secretary in the Ministry of Commerce and Industry, Darpan Jain, said that the UK has offered its best FTA deal to India compared to all its trade partners in services adding that the UK has provided comprehensive and deep market access in 137 sub-sectors. India has a trade surplus of around $6.6 billion with the UK, with exports of $19.8 billion and imports of $13.2 billion in FY25. Jain said the UK's commitments on mobility are comprehensive and the best in any FTA. 'The UK has provided an assured mobility regime for various categories of natural persons: Business Visitors (BV) for all sectors — 90 days in any six-month period; Intra-Corporate Transferees (ICT) for all sectors including partner and dependent — three years.' The ministry said that the UK has accorded Indian suppliers a legal guarantee to participate in the UK procurement market — worth approximately $122 billion — for procurements conducted at the Central level of government and certain utilities. India, similarly, opens up a market opportunity of $114 billion. 'For the first time, the UK agreed to take a binding commitment to provide non-discriminatory treatment to our suppliers under the UK's Social Value regime. The UK's threshold for goods and services is approximately Rs 1.6 crore; India's threshold is approximately Rs 5.5 crore. For procurement related to construction services, both sides have agreed to a similar threshold of Rs 60 crore,' the ministry said. A government official said that India has taken a complete carve-out for its MSME preferential procurement policy. 'With respect to the Make in India policy, access to UK suppliers is restricted to eligibility to participate as deemed 'Class-II local suppliers' in domestic tenders above the agreed thresholds. Indian suppliers will continue to receive preferential treatment as 'Class-I local suppliers' in the UK,' the official explained.
