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Time of India
6 days ago
- Business
- Time of India
With zero duty access, India eyes boom in key exports
Union commerce minister Piyush Goyal and his British counterpart Jonathan Reynold during the signing of the Comprehensive Economic and Trade Agreement (CETA), in the UK. NEW DELHI: Indian negotiators are targeting labour-intensive goods and services to boost India's tiny 1.9% share of UK imports. The new trade pact promises zero- or near-zero tariffs on textiles, leather and footwear, engineering goods, chemicals and pharmaceuticals - relief the government says will make Indian exports far more competitive. Government said 99% items of trade (called tariff lines), comprising 100% of India's exports, are covered in the deal. In textiles, for instance, there are 1,143 items on which zero-duty market access will be provided to Indian goods, blunting the duty advantage that Bangladesh, Cambodia and Pakistan have so far enjoyed. So, readymade garments or home textiles, carpets, handicrafts and traditional items such as pashmina shawls or Kanchipuram or bandhini sarees are expected to gain. India is fourth-largest textile supplier to UK, accounting for over 6% of imports. Government officials said India hopes to outperform competitors such as Vietnam, Indonesia, Cambodia, Turkey and Bangladesh in the footwear market, especially athleisure and sports shoes, in addition to Vellore and Kolhapuri chappals and traditional leather shoes. In recent years, several large sports shoe manufacturers have tied up with Indian producers to make footwear for brands like Puma, Adidas and New Balance for domestic and global markets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo There are sectors where India has a large presence in other markets but a limited share of the British market. Indian exporters hope to replace competitors across a variety of engineering goods, including machinery and components, where zero-duty access will be provided to 1,659 items. With exports of $4.3 billion, India holds a small share of the $194 billion machinery imports by British businesses. Govt is projecting to double the value of exports by March 2030. India also has a small share in UK's pharma imports - only $1 billion out of $30 billion in 2024. The govt is eyeing gains in not just generics but also medical devices such as ECG machines and X-ray systems. For chemicals, where India's exports to UK were $570 million last year, the government is betting on a 30-40% jump in the first year itself as over 1,200 chemicals will be given duty-free access. Businesses are eyeing an opportunity in gems and jewellery sector, where exports are now pegged at $940 million. Although government has maintained that it has not opened several critical agricultural sectors such as dairy, apples, edible oil and oats under the Comprehensive Economic & Trade Agreement, it hopes to push Indian grapes, processed food, bakery items and marine products into UK supermarkets. A lot of the market access in these segments will also depend on the quality standards that the UK puts in place and also other trade deals that it enters into in the coming months. 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
6 days ago
- Business
- Time of India
Duty cuts on UK goods may aid firms more than buyers
Union commerce minister Piyush Goyal and his British counterpart Jonathan Reynold during the signing of the Comprehensive Economic and Trade Agreement (CETA), in the UK. NEW DELHI: Government has agreed to cut tariffs on thousands of products imported from UK - from chocolates and cosmetics to cars, silver and Scotch - but reduction and elimination of customs duties will not translate into the entire benefit being passed on to consumers. To begin with, customs duty is only the basic cost of the landed price for an Indian seller. On top of that are local levies - GST or excise - which even an Indian manufacturer has to pay. And, this can be a significant portion of the final price. Take the case of alcohol, for instance, where the landed price of a bottle of the popular Johnnie Walker Black Label is estimated at around Rs 350, which at 150% customs duty sees a levy of Rs 525. On top of that, there is a 200% margin for the importer, the company, in most cases - which means an addition of around Rs 750 - taking the landed price to Rs 1,275. Then comes excise of 85% or Rs 1,084 and VAT of 25% (Rs 590), taking the wholesale price to Rs 2,950. Then comes the retail margin, pushing the cost in a market like Delhi to over Rs 3,000 a bottle. The actual price reduction for a customer will only be Rs 200-300 a bottle, a top industry executive told TOI while predicting a higher margin for companies. That's especially true for Made-in-India whisky, which blend anywhere between 1% and 25-30% Scotch imported in bulk form. "Going forward, for several MNCs operating in India, bottling in India may not be a great idea and they will simply import bottles of blended whisky," the source said. A similar situation is likely to play out in other sectors such as cosmetics too, where companies will see improved margins, said marketing executives. There is no mechanism for govt to ensure the full benefit is passed on. Although it tried to ensure the window is no longer available under GST and in any case, companies dragged authorities to court, questioning the calculations. In segments such as automobiles, competition from players will drive pricing behaviour, as will other trade agreements. For instance, with the EU deal in the pipeline, a German carmaker or Tesla may just lower domestic prices significantly to grab a bigger pie of the market. With duty reduction in several segments staggered over 10 years, price cuts are not on the immediate horizon. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
7 days ago
- Business
- Mint
India-UK FTA: Experts are bullish on these sectors, recommend top stocks that can benefit from the agreement
India-UK FTA: Various sectors and stocks from the Indian stock market will likely hog the limelight on Friday, July 25, when trading resumes on the bourses following the landmark free trade agreement (FTA) between India and the UK. The FTA, which covers a wide array of sectors, will cut tariffs for various British imports while 99% of Indian exports to the UK would see duties eliminated to zero, including for segments like textiles, leather goods, agri products, medical devices and drugs, as per the documents shared by Indian officials. Additionally, the India-UK FTA will make it easier for British firms to export whisky, cars and other products to the country. The FTA signed by the two countries is expected to boost bilateral trade by around $34 billion annually. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. Analysts believe that the India-UK trade deal is a lesson in global economic diplomacy and India's growing prominence in global trade. It assumes even more importance for India as it negotiates a trade deal with the US amid tariff threats. Moreover, with the China-plus-one policy gathering steam, India has emerged as an alternative. Analysts said that for India, the FTA could lead to more exports and greater foreign investment. Harshal Dassani, Business Head, INVasset PMS, said the zero-duty access to UK markets for textiles, gems, jewellery, seafood, engineering goods, and pharmaceuticals comes at a time when global supply chains are seeking China+1 partners. The agreement isn't just a diplomatic milestone—it's a targeted economic catalyst for multiple Indian sectors, Dasani added. Meanwhile, Pallavi Bakhru, Partner and UK Corridor Leader, Grant Thornton Bharat, believes the India–UK free trade agreement marks a pivotal moment - not only for boosting bilateral trade volumes, but for sparking employment and industrial renewal across both economies. She added that this FTA could unlock £25.5 billion in annual trade. Analysts largely remain bullish on sectors like textiles, gems and jewellery, and seafood as the deal opens direct market access in these export verticals. Additionally, they are also bullish on the sectors like auto, pharma and agriculture that could benefit. According to the FTA, Indian farm products will get the same low-tax treatment as products from top European countries like Germany, with India securing zero duties on 95% of agriculture and processed food items. Against this backdrop, Mahesh Ojha of Hensex sees agriculture-related stocks seeing an upside. "Duty-free access is expected to increase agri exports by over 20% in the next three years, contributing to India's goal of $100 billion agri-exports by 2030," the official said. The CETA eliminates UK tariffs on India's marine products. Despite the UK's $5.4 billion marine import market, India's share remains at just 2.25%, underscoring a significant untapped opportunity. Against this backdrop, Dasani said marine exporters such as Avanti Feeds could scale volumes rapidly with tariff barriers lifted. Under the FTA, there will be no import duties on Indian textiles and leather, which will make India more competitive with other exporting countries like Bangladesh and Cambodia. Dasani said for labour-intensive sectors like textiles, companies such as Vardhman Textiles and Arvind will benefit from an 8–12% cost advantage over global peers, unlocking new export orders. Meanwhile, Ojha recommends Welspun India and Arvind. India's total gems and jewellery exports to the UK are valued at $941 million, with $400 million coming from jewellery. The FTA opens up a huge market as the UK imports approximately $3 billion worth of jewellery annually. According to officials, tariff relaxations under the FTA are projected to double India's gems and Jewellery exports to the UK within the next 2-3 years. Jewellery and gems players like Titan and Kalyan Jewellers will gain from duty-free access in a high-margin market like the UK, where Indian craftsmanship is already well regarded, Dasani recommended. From 16% to zero, tariffs have been eliminated on India's leather and footwear. Ojha expects Relaxo and Bata India to benefit from this agreement. Engineering and auto component firms, notably Bosch India and SKF India, will ride on increased machinery and precision equipment exports, aided by a trusted trading framework, said Dasani. India will cut duties to 10% from over 100% under a quota system that will be gradually liberalised. In return, Indian manufacturers will gain access to the UK market for electric and hybrid vehicles, also under a quota system. Meanwhile, Ojha recommends looking at Tata Motors, Bharat Forge and Sona Comstar. Under the trade agreement, tariffs on Scotch whisky will drop to 75% from 150%, and then slide to 40% over the next decade, according to the British government. This, according to Ojha spells good for United Spirits, a subsidiary of UK-based Diageo PLC. Further, the focus on services, defence, education, and climate opens up avenues for IT giants like Infosys and TCS through greater mobility and cross-border contracts, Dasani said. "As tariffs fall and credibility rises, Indian exporters gain pricing power, scale access, and long-term visibility—key ingredients for rerating export-heavy portfolios in 2025 and beyond," he added. (With inputs from agencies) Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
7 days ago
- Business
- Mint
India-UK trade deal: THESE products will now get Zero Duty access in free trade agreement
India on Thursday signed a free trade agreement, officially dubbed as the Comprehensive Economic and Trade Agreement (CETA), with the UK – its 16th trade pact so far – as the country aims to boost bilateral trade and investments. A free trade agreement is an arrangement between two or more countries where they agree either to end or reduce customs duties on the maximum number of goods traded between them, besides cutting down non-trade barriers on a significant value of imports from partner countries and easing norms to promote services exports and bilateral investments. India has protected the interest of domestic farmers by excluding dairy products, edible oils and apples in the FTA, while securing zero duties on 95 per cent of agriculture and processed food items. Processed Food - mango pulp, pickles, and pulses, fruits, cereals, spice mixesVegetable/oilTransport/autoLeather/footwearElectronic machineryHeadgear/glass/ceramicTextiles/clothingWood/paperBase metalsMechanical machineryMineralsChemicalsPlastic/rubberInstruments/clocksGems and jewelleryFurniture/sports goodsArms/ammunitionsTurmeric, pepper, cardamom Marine products - shrimp and tuna, fishmeal, and feeds The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. The FTA is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars and other products to India, besides boosting the overall trade basket, according to Indian officials. The deal, firmed up after three years of negotiations, is expected to ensure comprehensive market access for Indian goods across all sectors and India will gain from tariff elimination on about 99 per cent of tariff lines (product categories) covering almost 100 per cent of the trade values, they said. According to a PTI report, the UK said Indian consumers will benefit from improved access to the best British products – from soft drinks and cosmetics to cars and medical devices – as average tariffs will drop from 15 per cent to 3 per cent after the FTA kicks in. The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses' exports to the UK, it said in a statement, hours before the FTA was inked. "Our landmark trade deal with India is a major win for Britain," Starmer was quoted as saying in the readout.
The Hindu
7 days ago
- Business
- The Hindu
Sensex tanks 542 points dragged down by blue-chip stocks, foreign fund outflows
Equity markets fell on Thursday (July 24, 2025) with the benchmark Sensex tumbling 542.47 points, amid profit-taking in blue-chip stocks and continuous foreign fund outflows. Despite a positive start, the 30-share BSE Sensex failed to carry forward the momentum and fell later in the trade. The benchmark tanked 542.47 points, or 0.66 per cent, to settle at 82,184.17. During the day, it tumbled 679.42 points, or 0.82 per cent, to 82,047.22. The 50-share NSE Nifty dropped 157.80 points, or 0.63 per cent, to 25,062.10. From the Sensex firms, Trent, Tech Mahindra, Bajaj Finserv, Reliance Industries, Infosys, Kotak Mahindra Bank, HCL Technologies, and NTPC were among the biggest laggards. However, Eternal, Tata Motors, Sun Pharma, Tata Steel, and Titan were the gainers. Infosys declined over 1 per cent amid profit-taking after its June quarter earnings announcement. In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in positive territory. European markets were quoting in the green. The US markets ended higher on Wednesday (July 23). India and the United Kingdom on Thursday (July 24, 2025) inked a landmark free trade agreement (FTA) that will cut tariffs on British whisky, cars, and an array of items, besides boosting bilateral trade by about $34 billion annually. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer. The FTA is expected to benefit 99 per cent Indian exports from tariff and will make it easier for British firms to export whisky, cars, and other products to India, besides boosting the overall trade basket, according to Indian officials. Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,209.11 crore on Wednesday, according to exchange data. However, Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,358.52 crore in the previous trade. Global oil benchmark Brent crude jumped 1.24 per cent to $69.36 a barrel. On Wednesday, the Sensex jumped 539.83 points, or 0.66 per cent, to settle at 82,726.64. The Nifty gained 159 points or 0.63 per cent to settle at 25,219.90.
