5 days ago
India-UK FTA may create more than 1.3 lakh jobs in Coimbatore: CII
COIMBATORE: The India-UK Free Trade Agreement (FTA) is set to be a game-changer for Coimbatore's export landscape, said Rajesh Duraiswamy, chairman of the Confederation of Indian Industry (CII), Coimbatore.
In a release, Duraiswamy said the landmark pact eliminates steep tariffs -- ranging from 8% to 16%, and up to 70% for processed foods -- granting immediate duty-free access to the UK, one of the world's most lucrative markets.
The FTA is expected to unlock major gains for Coimbatore's core sectors such as textiles, engineering, pumps, agro-products and IT services. The removal of the 12% import duty on textiles and apparel is likely to boost the region's knitwear and garment exports by 20%, unlocking an incremental opportunity of over Rs 1,600 crore annually, he said.
Engineering and auto component exports, previously subject to duties of up to 18%, are projected to nearly double -- from US$260 million to US$585 million -- by 2030. Coimbatore's identity as the pump capital of Asia would also get a boost, with pump and machinery exports expected to grow from Rs 80 crore to Rs 300 crore in three years due to zero-duty access, he said.
Agro and food processing sectors, including coconut and coir products, will benefit from the removal of tariffs as high as 70%, opening new avenues for local producers.
The IT and services sector is also set to gain, with savings of around Rs 309 crore annually through social security waivers and improved professional mobility, he added.
In addition to tariff benefits, streamlined customs procedures, digital documentation, and simplified compliance would help more than 40,000 MSMEs access the UK market more easily, he said.
'Collectively, these measures are expected to catalyse the creation of more than 1.3 lakh direct and indirect jobs in and around Coimbatore, reinforcing Tamil Nadu's leadership in manufacturing and exports,' he added
