Duty-free access to the UK’s $23 billion market under the trade pact will give Indian micro, small and medium enterprises (MSMEs) an edge over competitors in labour-intensive sectors such as leather & footwear, textiles & clothing, gems & jewellery, furniture, and sports goods.
Beyond labour-intensive industries, MSMEs in marine, agriculture, pharmaceuticals, chemicals, electronics, sports goods, engineering, gems and jewellery, oilseeds, soft plantations, and alcoholic beverages stand to benefit, scaling up production and innovation, officials said.
Officials reckon that the FTA will end India’s previous duty disadvantage versus competitors like Bangladesh and Cambodia, by giving MSMEs instant competitiveness in the UK market.
Textile future outlook
Conservative estimates project India’s leather and footwear exports to the UK could exceed $900 million, marking a substantial leap forward. This is expected to enhance financial stability for SMEs, artisans including women, craftsmen, supporting families and communities while positioning them as key players in global value chains.
Access to trade education, finance, partner matchmaking, and export facilitation helps MSMEs strengthen their global supply chain presence. Similarly, simplified regulatory processes under Technical Barriers to Trade (TBT) and Good Regulatory Practices will reduce hurdles in certifications and logistics. FTA provisions enable MSMEs to adopt e-commerce, digital tools, and sustainable production technologies, boosting efficiency and market reach.
IP and GI tags
Stronger intellectual property rights and geographical indication safeguards protect MSMEs’ unique products, enhancing brand recognition internationally. Commitments to ethical labour and sustainability practices ensure MSMEs meet global expectations, appealing to conscientious buyers. MSMEs gain entry into UK public contracts, opening fresh avenues for growth and expansion.
Increased export opportunities in textiles, leather, and footwear, as highlighted in the FTA’s focus on labour-intensive sectors, are likely to drive demand for skilled artisans, potentially creating jobs in hubs like, for example, Tirupur and Kanpur.