India-UK Trade Agreement: Key States and Sectors Poised to Gain from Tariff Reductions
As India and the United Kingdom finalize their Comprehensive Economic and Trade Agreement (CETA), numerous states in India are set to benefit significantly from the deal. This agreement aims to eliminate tariffs and improve market access, creating new export opportunities in various sectors, including textiles, engineering goods, pharmaceuticals, marine products, and handicrafts. The anticipated economic gains highlight the potential for substantial export growth across key regions in India.
Maharashtra’s Economic Boost
Maharashtra is expected to see considerable benefits from the CETA, particularly in the engineering goods, pharmaceuticals, and apparel sectors. The elimination of tariffs will likely lead to increased exports of auto components, generic medicines, and garments from major hubs such as Pune, Mumbai, and Ichalkaranji. The state’s robust manufacturing base positions it well to capitalize on the enhanced access to the UK market, allowing local businesses to expand their reach and improve competitiveness.
Gujarat’s Diverse Opportunities
Gujarat stands to gain from the trade agreement through its strong sectors in pharmaceuticals, chemicals, engineering goods, and marine products. Cities like Ahmedabad, Surat, Bharuch, and Rajkot are poised for growth, with pharmaceutical exports expected to rise significantly. The easier access to the UK market will also benefit micro, small, and medium enterprises (MSMEs) in the region, enabling them to tap into new opportunities and increase their export volumes.
Textile and Leather Gains in Tamil Nadu
Tamil Nadu is set to experience major gains in its textile, leather, and engineering goods sectors. The CETA will enhance the price competitiveness of apparel produced in Tiruppur, leather goods from Vellore, and auto parts manufactured in Chennai. This improved access to the UK market is anticipated to boost exports significantly, allowing Tamil Nadu to strengthen its position as a key player in these industries.
Export Growth in Other Key States
Several other states are also expected to benefit from the CETA. Andhra Pradesh will see substantial gains in marine products and textiles, particularly in shrimp and seafood exports from Visakhapatnam and Kakinada. Odisha’s seafood and handicrafts sectors are likely to thrive, while Punjab’s textile and engineering goods industries will benefit from reduced tariffs. West Bengal’s leather goods and processed food exports, along with Kerala’s marine products and spices, are also projected to increase. Additionally, Haryana and Uttar Pradesh are set to gain from the elimination of duties on auto components, textiles, handicrafts, and leather exports, further enhancing India’s trade landscape with the UK.
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