Exporters in Karnataka flagged off consignments as the U.K.-India Free Trade Agreement (FTA) kicked in on Wednesday.

Describing it as a landmark development, Large and Medium Industries Minister M.B. Patil said the agreement is expected to provide a major boost to Karnataka’s biotechnology, pharmaceuticals, textiles and garments, marine products, engineering goods and machinery sectors. Premium coffee grown in Chikkmagaluru and Kodagu, along with the State’s spice industry, would also stand to benefit, he said.

British Deputy High Commissioner Chandru Iyer flagged off a consignment of Jindal aluminium and electronic products bound for the United Kingdom from the Inland Container Depot at Whitefield in Bengaluru.

Under the Agreement, 99% of Indian products would gain duty-free access to the UK market and nearly all the sectors in which Karnataka enjoys a competitive advantage would fall within its scope, Mr. Patil emphasised.

Who will benefit

According to the Minister, exports of 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 manufactured in Hassan, Bidar and Bengaluru Urban districts would no longer attract import duties in the U.K. market.

Mr. Patil said the agreement would reduce U.K. import tariffs on aerospace products from 11% to zero, on automotive products from 110% to zero, on electrical machinery from 22% to zero, and on medical devices from 13.75% to zero. He added that tariffs on certain other products would also be phased out over the next five to six years.

IT industry, MSMEs to benefit as well

The agreement’s Mode 1 services provisions would significantly benefit Bengaluru’s IT industry, Mr. Patil said, adding that several British companies were expected to establish their Global Capability Centres (GCCs) in Bengaluru and Mysuru in the coming years. Belagavi was also expected to benefit substantially from opportunities in the aerospace sector.

He said Karnataka would further strengthen partnerships with the United Kingdom in aerospace and defence, advanced manufacturing, electric mobility, clean energy, semiconductors, deep-tech and GCCs. The State would also organise investment roadshows in the UK to attract British investors. The government would also conduct a dedicated awareness programme for Karnataka’s coffee growers, garment manufacturers and MSME exporters, he said.