The Indian government has urged businesses to make full use of free trade agreements (FTAs) and schemes beyond interest subsidy to boost shipments from the country. According to reports from The Times of India, Commerce and Industry Minister Piyush Goyal met export promotion councils (EPCs) this week to assess progress towards meeting targets and discuss medium-term sectoral export strategies. During his recent visit to London, Goyal emphasized that transformational growth should be the prime focus of the India-UK Free Trade Agreement, stating that international trade normally grows at 4-6% and India must deliver more than that level of ambition.
The emphasis on FTAs comes amid a flurry of trade deals, with the India-UK Comprehensive Economic and Trade Agreement set to be implemented from July 15. As reported by The Times of India, there is significant government emphasis on ensuring significant utilisation of benefits from these agreements. During his London visit, Goyal had meaningful discussions with his British counterpart, Business and Trade Secretary Peter Kyle, to explore new opportunities to deepen bilateral economic and trade cooperation. The minister noted that the CETA is estimated to be around 48-billion-pounds annually and represents a far more comprehensive opportunity beyond just tariffs and rules of origin.
One of the key concerns highlighted is that Indian industry, traditionally domestic-focused, may not have created adequate capacity in sectors such as textiles to take advantage of duty concessions in FTAs. According to The Times of India, the UK deal and the EU agreement, likely to kick in from year-end, will remove tariffs on several labour-intensive sectors including textiles and footwear, helping them compete with products from Bangladesh and other countries that enjoy zero tariffs. Goyal emphasized that collaborations, cooperations, and partnerships will be the right way for businesses to come in quickly, noting that it will make the journey faster for both British and Indian businesses.
The Textile Export Facilitation Centre (TEFC) under the Textiles Committee, Ministry of Textiles, Government of India, organised an awareness programme on "Maximizing Exports Through FTAs and Government Schemes" at Jaipur. The programme aimed to help textile exporters understand how to make better use of Free Trade Agreements and was attended by nearly 100 representatives from textile manufacturing units, exporters, MSMEs, entrepreneurs, industry associations, and other stakeholders from across Rajasthan. As per The Times of India, the initiative comes at a critical time as India prepares to implement the India-UK Comprehensive Economic and Trade Agreement (CETA) from July 15.
Looking ahead, India is also expected to sign a Free Trade Agreement with the 27-member European Union by December, with implementation likely between February and March 2027. Under the upcoming India-UK agreement, 99% of Indian exports will receive duty-free access to the UK market, creating significant opportunities for textile and apparel exporters. According to The Times of India, the upcoming EU agreement is expected to further expand market access for Indian textile and apparel exports, reinforcing the importance of helping exporters effectively leverage FTAs. Kartikay Dhanda, Secretary, Textiles Committee, Ministry of Textiles, emphasized that by focusing on quality, innovation, value addition, sustainability, and global competitiveness, Rajasthan can strengthen its contribution to India's textile export growth.
