Free Trade Deals Open Global Doors for MSMEs: FKCCI Chief
The President of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Uma Reddy, has said that while products from Bengaluru can now reach major global cities in days, favourable market access through Free Trade Agreements (FTAs) is essential for businesses to compete globally.
Speaking at an outreach programme jointly organised by FKCCI and the Export Promotion Council for Handicrafts (EPCH) in Bengaluru on Wednesday, Reddy emphasised that 'what our businesses need are favourable market access' in an era where markets are no longer bounded by geography.
Reddy highlighted the transformative potential of recent FTAs, including the India-UK Comprehensive Economic and Trade Agreement (CETA), for Karnataka's diverse industries ranging from engineering and electronics to textiles, coffee, spices, biotechnology, information technology, and handicrafts. 'Karnataka's artisans and handicraft exporters carry forward our cultural heritage, and providing them better international market access ensures both economic growth and cultural preservation,' she added.
The programme was themed 'Free Trade Agreements (FTAs) and Comprehensive Economic and Trade Agreements (CETAs) with various countries' and included a session on the Authorised Economic Operator (AEO) programme by Bangalore Customs.
India has over 6.3 crore Micro, Small and Medium Enterprises (MSMEs), contributing nearly 30% to the GDP. Reddy noted that effective use of FTAs can be transformational for these businesses by reducing tariffs, simplifying procedures, encouraging investments, and opening new markets. India has recently signed FTAs with the UAE, Australia, and EFTA countries, and finalised the India-UK CETA.
She also informed that the Directorate General of Foreign Trade (DGFT) has notified procedures for tariff rate quotas (TRQs) for importing vehicles from the UK under CETA, effective from July 15, 2026. Under this FTA, customs duty on vehicles is reduced to 10% from the existing 110%, subject to annual quota limits.
