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The Hindu
08-05-2025
- Business
- The Hindu
Caution and optimism: on India's FTA with the United Kingdom
The Free Trade Agreement (FTA) between India and the United Kingdom marks a strong step towards securing India's bilateral ties in an increasingly fragmented global trade environment. The key highlight for India is that 99% of its exports will attract no duties. Apart from being hailed by business leaders, industry associations representing sectors such as engineering goods, apparel, and gems and jewellery — each among the top Indian exports to the U.K. — have expressed strong optimism for future trade growth. Engineering exports, for example, are expected to nearly double to $7.55 billion by 2029-30, according to the Engineering Exports Promotion Council of India. Overall bilateral trade is expected to double to $120 billion by 2030. The other major win is that Indian workers temporarily working in the U.K. and their employers will be exempt from making social security contributions for three years. This is likely to ease the hiring of Indian workers in the U.K. The FTA also eases the movement of professionals and investors, which should go some way in reviving India's flagging foreign direct investment levels. On the flip side, India has agreed to cut its tariffs on 90% of the tariff lines imported from the U.K., with 85% of these to be reduced to zero tariff within a decade. While the reduction in automotive tariffs is unlikely to meaningfully change the price-conscious behaviour of Indians, the slashing of import duties on whiskey and gin will increase competition in India and perhaps slow the ongoing premiumisation trend. Although the Modi government has been quick to criticise the FTAs signed by the UPA for putting India at a disadvantage, some of its own FTAs have faced the same issue. The India-UAE CEPA (2022), for example, has seen India's trade balance worsen over the years. The FTA with Australia, too, has not resulted in gains for Indian exports. Indian farmer organisations — opposed to the U.K. FTA since talks began — are up in arms over the reduced tariffs on lamb and salmon and other edible products. Here, too, the government must act to ensure that India's farmers, already in a low-income, low-margin situation, are not elbowed out. Then, there is the fact that trade experts agree that the India-U.K. FTA will be the template for future agreements with the EU and the U.S. India must be careful here. While the U.K. is a relatively small trading partner, the EU and the U.S. deals — when they happen — will have a more significant impact. India has already cut import duties on several food and auto products in line with U.S. demands. With a less than 2% contribution to global exports, Indian manufacturing needs to be helped, not undermined.
Emirates 24/7
11-04-2025
- Business
- Emirates 24/7
DP World commences construction of Bharat Mart strategic trading hub in Dubai
DP World commences construction of Bharat Mart strategic trading hub in Dubai, offering new horizons for Indian businesses Hamdan bin Mohammed: With non-oil bilateral trade surging and over 2,300 Indian companies thriving in Jafza, Bharat Mart will further strengthen the UAE-India partnership Virtual model of project unveiled in the presence of His Highness and India's Minister of Commerce and Industry Set to open by the end of 2026 inside JAFZA, the strategic trading hub will span 2.7 million square feet and feature 1,500 showrooms when fully ready DP World has commenced the construction of Bharat Mart, a global business-to-business (B2B) and business-to-consumer (B2C) marketplace in Dubai that is designed to facilitate trade between Indian businesses and global markets. The company unveiled the virtual model of the project in the presence of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai; His Excellency Piyush Goyal, India's Minister of Commerce and Industry; along with His Excellency Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World. Bharat Mart is set to open by the end of 2026. With construction underway, DP World is paving the way for a transformative marketplace that will redefine global trade links between India, the Middle East, and beyond. His Highness Sheikh Hamdan said: 'Dubai's world-class infrastructure and connectivity make it a vital partner as India expands its global trade. With non-oil bilateral trade surging and over 2,300 Indian companies thriving in Jafza, Bharat Mart will further strengthen the UAE-India partnership by providing Indian goods faster access to global markets.' His Excellency Piyush Goyal said: 'Bharat Mart is a transformative project launched by DP World with immense potential and we keenly await its completion. DP World's efforts around developing the Virtual Trade Corridor between India and UAE will ensure that trade and commerce scales new heights in the spirit envisaged by the India-UAE CEPA. We also appreciate the efforts of DP World in building new dimensions and opportunities that will enable Indian businesses/MSMEs to reach African markets.' Ambitious targets His Excellency Sultan Ahmed bin Sulayem added: 'India and the UAE aim to reach $100 billion in non-oil trade by 2030, and Bharat Mart will be a key driver in achieving this milestone. DP World remains committed to enhancing trade by developing world-class logistics infrastructure, unlocking new markets, and supporting sustainable economic growth.' Spanning 2.7 million square feet, with its initial phase covering 1.3 million square feet, Bharat Mart will serve as a key trading hub for Indian micro, small and medium enterprises (MSMEs). Strategically located in Jebel Ali Free Zone (JAFZA), the facility will feature 1,500 showrooms, and over 700,000 square feet of state-of-the-art warehousing, light industrial units, office spaces, and meeting facilities with dedicated space for women-led businesses from India. Critical advantage Just 11 km from Jebel Ali Port, 15 km from Al Maktoum International Airport and with convenient access to Etihad Rail, Bharat Mart promises to offer Indian businesses seamless access to a multimodal logistics network. Through Jebel Ali's ecosystem, the exporters will connect to 150 maritime destinations, in addition to air connectivity, linking the facility to over 300 cities worldwide, enhancing market reach and efficiency. JAFZA continues to play a key role India-UAE bilateral trade, hosting over 2,300 Indian companies, up 15% year-on-year, following the establishment of 283 new Indian businesses in 2024, reinforcing Dubai's role as a critical global trade hub. Follow Emirates 24|7 on Google News.
