India-UK trade pact to help boost exports from number of sectors: Experts

New Delhi, Jul 25 (PTI) The free trade agreement between India and the UK will help boost the country's exports to Britain in sectors such as consumer goods, cosmetics, and apparel, experts said on Friday.

They said that the biggest beneficiary will be UK-based scotch brands, with high import tariffs seeing a sharp reduction.

"Given India's evolved whisky-drinking market, this will encourage both established players and new entrants to expand their global portfolio offerings here," Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India, said.

Aditi Nayar, Chief Economist, ICRA, said India's trade surplus with the UK has grown marginally over the past decade.

"The Free Trade Agreement (FTA) is expected to significantly enhance the bilateral trade relationship," she said.

In the realm of services trade, Nayar said India stands to gain from the UK's commitments under the FTA in sectors such as IT/ITeS, financial services, professional services, other business services, and educational services.

It is also expected to ease professional mobility and exempt Indian workers from social security payments for three years, she added.

Pooja Ramchandani, Partner, Shardul Amarchand Mangaldas & Co, said that the social security agreement between the two countries will make cross-border mobility more viable by eliminating the burden of double social security contributions, benefitting business and employees alike.

"The pact reflects a growing recognition of the need for portable social protection in a globalised economy," she said.

Abhishek Khaitan, Managing Director, Radico Khaitan, said that the reduction in import duties on Scotch whisky and gin will not only enhance consumer access to premium international spirits but also enable Indian companies to strengthen cross-border collaborations.

Agneshwar Sen, Trade Policy Leader, EY India, said that the agreement will also eliminate tariffs on key Indian exports from textiles and auto parts to seafood and jewellery boosting MSMEs, job creation, and growth in labour-intensive sectors.

"UK firms will gain access to India's vast consumer market. It is not just merchandise trade but in services trade as well Indian professionals will benefit from relaxed visa norms and a landmark social security deal," Sen said.

Bipin Sapra, Partner and Indirect Tax Trade Leader, EY India, added that in the current global landscape marked by tariff-related uncertainty, the India-UK FTA is a timely and strategic move.

Suresh Nair, Indirect Tax Partner - Consumer Products and Retail, EY India, said that the agreement will reduce tariffs on nearly all Indian goods, enabling UK consumers to access more affordable textiles, food products, and a wide range of goods like leather, footwear, and jewellery. PTI JD HVA