Karnataka Launches Exports as UK-India Trade Pact Takes Effect
Exporters in Karnataka flagged off consignments to the United Kingdom on Wednesday, marking the start of the UK-India Free Trade Agreement (FTA). The agreement, which came into force on the same day, is expected to boost several sectors in the state, including biotechnology, pharmaceuticals, textiles, and marine products.
Large and Medium Industries Minister M.B. Patil described the development as a landmark for Karnataka’s trade relations. He stated that premium coffee from Chikkmagaluru and Kodagu, as well as the state’s spice industry, would benefit from reduced tariffs.
British Deputy High Commissioner Chandru Iyer flagged off a consignment of Jindal aluminium and electronic products from the Inland Container Depot at Whitefield in Bengaluru. Under the agreement, 99% of Indian products will gain duty-free access to the UK market, covering nearly all sectors where Karnataka has a competitive advantage.
The minister highlighted specific products that will no longer attract import duties in the UK, including oilseeds, black pepper, cardamom, Byadagi and Devanur chillies, millets, flowers, fruits, vegetables, fish, coconut, mango, lemon, jasmine, marigold, premium coffee from Kodagu and Chikkamagaluru, and processed agricultural and food products from Hassan, Bidar, and Bengaluru Urban districts.
Mr. Patil also noted that the agreement reduces UK import tariffs on aerospace products from 11% to zero, automotive products from 110% to zero, electrical machinery from 22% to zero, and medical devices from 13.75% to zero. Tariffs on certain other products will be phased out over the next five to six years.
The agreement’s Mode 1 services provisions are expected to significantly benefit Bengaluru’s IT industry. Mr. Patil said several British companies are likely to establish Global Capability Centres (GCCs) in Bengaluru and Mysuru in the coming years. Belagavi may also benefit from opportunities in the aerospace sector.
Karnataka plans to further strengthen partnerships with the UK in aerospace and defence, advanced manufacturing, electric mobility, clean energy, semiconductors, deep-tech, and GCCs. The state will organise investment roadshows in the UK to attract British investors and conduct awareness programmes for coffee growers, garment manufacturers, and MSME exporters.
