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In what ways could the India-U.K. free trade agreement reshape economic opportunities for different sections of Indian society?

Since the agreement is described as 'game-changing' and beneficial to all, I wish to explore how such trade deals can affect various groups, including small businesses, farmers, and workers.
trade
uk-india
economy
inequality
The proposed India-U.K. Free Trade Agreement (FTA) aims to reduce tariffs and promote easier market access between the two countries. This agreement is expected to boost trade, investment, and economic cooperation, leading to new opportunities and challenges for different sections of Indian society. Its impact will vary across sectors and groups.
  • Small Businesses (MSMEs):
    • Greater access to the U.K. market can help Indian MSMEs expand exports, especially in textiles, handicrafts, and engineering goods.
    • Lower tariffs may make Indian products more competitive abroad, but MSMEs may also face increased competition from U.K. imports at home.
    • Potential for technology transfer and partnerships with U.K. firms, leading to skill upgradation.
  • Farmers and Agricultural Sector:
    • Export opportunities for products like tea, spices, fruits, and vegetables could increase, benefiting farmers and agri-exporters.
    • Concerns may arise if cheaper agricultural imports from the U.K. affect domestic prices or demand for local produce.
    • Scope for collaboration in food processing, storage, and logistics due to enhanced investment.
  • Workers and Labour Force:
    • Job creation in export-oriented sectors such as apparel, gems and jewellery, and IT services.
    • Skill development due to exposure to higher standards and new technologies from the U.K.
    • Some sectors may see job losses if unable to compete with U.K. imports, highlighting the need for retraining and support.
  • Startups and Technology Sector:
    • Improved access to venture capital and innovation networks in the U.K. can help Indian startups scale globally.
    • Opportunities for collaboration in fintech, health tech, and green technology.
  • Consumers:
    • Wider choice of goods and services, possibly at lower prices due to reduced tariffs.
    • Access to better-quality imported products from the U.K.
  • Education and Services Sector:
    • Indian professionals in IT, finance, and healthcare may benefit from easier movement and recognition of qualifications.
    • Potential for Indian students to access U.K. educational institutions at more affordable rates or through joint programs.
Answered a month ago
Saurabh Aspirants