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India's Free Trade Agreement (FTA) with the United Kingdom is expected to take effect by May 1, while a similar agreement with Europe may be finalized by the end of the year, said Ravi Sam, Vice Chairman of Texprocil, during a business leaders' meeting in Coimbatore attended by commerce Minister Piyush Goyal.
"Now Ministers are assured it should be around the first of May that the UK will come into play, and also Europe will be by the end of the year. With both this happening, it's going to open a huge market for the Indian exporters, not just textiles, across the board," said Sam after his meeting with Minister Goyal. Sam noted that these agreements will give a major boost to Indian exporters, especially the textile sector, which has faced difficulties accessing Western markets due to tariffs and duties. According to Sam, the FTAs will open large new markets not just for textiles but for multiple industries, offering relief to manufacturers amid global trade uncertainties. He added that exports have been a long-standing concern, as Indian businesses have struggled for years with high tariffs and anti-dumping duties in the UK and European markets. He expressed optimism that the new agreements will improve the situation. "For almost two decades, we've been having these unfortunate tariffs put on us and anti-dumping duties, etc. And we've been losing out on the whole of Europe and the UK. I think this is very good news. So we really hope, like the minister says, we get a very proactive government which works with the central government and many of our wishes come true, starting from the airport," Sam added. He described Coimbatore as a fast-growing Tier-II city with strong economic potential and a positive business environment. The developments come as the Union government intensifies its trade diplomacy. Union Commerce and Industry Minister Piyush Goyal, who addressed the business leaders in Coimbatore on Friday, noted that India is currently in discussions with at least 20 more countries to open market access. These negotiations follow nine free trade agreements signed over the last three and a half years, which have already provided preferential access to 38 developed nations. Goyal said discussions are underway with regions including the Gulf Cooperation Council (GCC), Eurasia, and Israel. He emphasised that India's FTAs are focused on developed countries with high purchasing power, where local industries do not directly compete with Indian businesses. This approach helps Indian exporters grow without facing unfair competition at home. The minister added that nearly two-thirds of global trade is now open to Indian businesses through these agreements, creating significant expansion opportunities. He also praised Coimbatore as a key hub of entrepreneurship in South India, noting that its MSMEs play an important role in shaping government policies. (ANI)
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