India, UK deal to boost jobs, double bilateral trade: Goyal

NEW DELHI: The trade deal with the UK will not just boost bilateral trade but also help create a large number of jobs, commerce and industry minister Piyush Goyal said. "UK trade agreement will help create three times more jobs (through bilateral trade) for goods and services. We will create a lot of jobs through UK and other FTAs." The govt has said that the trade agreement announced Tuesday will help double trade to $120 billion by 2030.

The trade deal will, however, take some time to be implemented as the two sides will complete the legal scrubbing in around three months, which will be followed by a nod from the British Parliament, which can take up to a year, officials said. "They will, however, try to speed it up so that it can be implemented earlier," a senior official said. Govt sources said India will make major gains in market access for food products ranging from fresh grapes to frozen and preserved fruits, processed food, bakery items, and sauces. In textiles, India can increase its market share in the UK from the current 9% as most items are getting zero-duty access.

At the same time, govt has sought to protect its interests across sectors, and the domestic industry has nothing to fear when it comes to sectors, such as automobiles or whisky, an officer said. In the case of whisky, govt sources argued that the overall imports were not very high and it was difficult to step up production. Duty is proposed to be halved from 150% before being further reduced to 40%. Sources said that the rate will be the same for bottled and bulk whisky and gin.

The number of cars agreed to for lower tariff entry is quite small compared to the demand here, with quotas based on engine capacity and price, the official said. "It has all been done in consultation with industry," the official said.


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