Terming it a milestone for India’s “local for global” and Atmanirbhar Bharat pitches connected to the goal of a ‘Viksit Bharat’, Union Commerce Minister Piyush Goyal on Saturday termed the Free Trade Agreement (FTA) signed between Prime Minister Narendra Modi and his UK counterpart Keir Starmer a gamechanger when it comes to accelerating India’s journey towards becoming the third largest economy in the world.
Arguing that the agreement had been clinched after two decades due to PM Modi’s personal popularity and acceptability the world over, the minister said the FTA will also be beneficial for labour-intensive sectors and for GI products such as Kolhapuri chappals which were recently at the core of a controversy.
“This game-changing Free Trade Agreement brings unlimited opportunities for the country’s farmers, entrepreneurs, the MSME (Micro, Small and Medium Enterprises) sector, labour sector, the youth, fishermen…of all the Free Trade Agreements inked till now, this is the biggest, most significant and comprehensive,” Goyal said.
“In about 30 chapters, it addresses significant topics on which India could not walk shoulder to shoulder with those on the international stage earlier…on these, India has, with strength and on its own terms, signed it with confidence… I believe this will have a significant positive impact on the nation’s economy going forward, and its benefits will become visible going forward,” he added.
On one side, he said, the FTA had been inked with a developed nation which was the sixth largest economy in the world while on the other, the economic priorities and “defensive interests” when it came to commerce, had been balanced.
The dairy sector, for instance, he said, had not been opened up just like items identified as sensitive from the agriculture sector, resulting in a “win-win” agreement as far as the interests of both sides were concerned.
“Dairy has not been opened; agriculture, no sensitive item has been opened; ethanol either… It is a win-win FTA which is comprehensive, simple and balanced cooperation, benefiting both sides, which has been inked after much back-and-forth over 22-23 years of discussions… This agreement could happen only due to Prime Minister Narendra Modi under whom India is a developing economy with its own capabilities and is no longer afraid of any competition as it moves forward with strength,” he said.
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Spices originating from India for instance, he said, would get duty-free access to the UK market “benefiting the tastebuds” of the 50-lakh strong South Asian diaspora in the United Kingdom.
“I am saying this because more than 50 lakh people from South Asia stay in the UK – 18 lakh of them are Indian-origin; if we count the rest, they are from South Asia. All of their tastebuds (will now be able to benefit)…food items of daily consumption can now mostly be exported from India, ensuring a better market for the produce of Indian farmers after value addition through processing here. This has been our priority,” he said.
Underlining the benefits for the textile, footwear, leather and toys, furniture, and labour-intensive sectors such as gems and jewellery, in addition to pharmaceuticals, he said the FTA would help MSMEs propel their products “from local to global”.
The agreement would also benefit Geographical Indication (GI)-tagged products such as Kolhapuri chappals, which India would now be credited for, the minister said, recalling his own fondness for them. Citing the recent controversy around Kolhapuri chappals as an example, Goyal urged those engaged in various sectors to study and utilise the provisions of the FTA for the benefit of the sector which they represented.
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“The design of our Kolhapuri chappal was recently used in exported products on which the Commerce Ministry immediately took action. Going forward, when Kolhapuri chappals are exported, India will get credit, it will be done under India’s name as a GI Indian product. Many international companies are now expressing interest in selling Indian designs through products manufactured by them in the global market,” he said.
“I personally feel that Kolhapuri chappals alone can sustain international business of between Rs 8,000 crore to Rs 10,000 crore. There are such beautiful designs which are there…I have myself spent my entire childhood in Kolhapuri chappals and understand the attraction that they have,” he added.
Calling special attention to the inking of the Double Contribution Convention Agreement, which will reduce the cost of doing business and especially benefit Indian-origin professionals employed in the UK, he said it will benefit those engaged in sectors ranging from business, finance, banking, IT, AI, and design, among others.
“Around 25 per cent of the salary of such professionals used to be lost to contributions to UK social services… This would only be returnable after 10 years of employment there…harming those going there for a year to three years… Under the Double Contribution Convention Agreement, anyone going to the UK to render services for three years… (this) will be transferred to EPFO accounts in India in their names,” he said, bringing “fair competition” to the UK’s services sector.
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FTAs under the Congress-led United Progressive Alliance (UPA), Goyal alleged, were not conducive to India’s benefit but harmful to its interests. “The UPA government used to sign FTAs with ASEAN countries…with those nations which are competing with us. They used to open India’s markets to such nations which used to cause loss to our manufacturing sector by selling their produce at cheaper prices,” he alleged.
“The FTAs signed under PM Modi…and we are also in discussions with other developed nations (for agreements)…are with those with whom we do not compete but complement each other… This is another step towards the creation of a Viksit and Atmanirbhar Bharat…it will prove to be a milestone for Make in India and ‘local for global’,” he added.
