India-U.K. CETA to spur sourcing of textiles, food produce from Telangana, help attract more GCCs
The India–UK Comprehensive Economic and Trade Agreement (CETA) that came into force on July 15 is expected to spur demand for textiles, agri produce, spices
The India–UK Comprehensive Economic and Trade Agreement (CETA) that came into force on July 15 is expected to spur demand for textiles, agri produce, spices and marine products from the Telugu States, besides making several British firms consider setting up global capability centres in Hyderabad, two senior officials said. Textile belts in Warangal and Mangalagiri stood to benefit as, besides demand from the Indian diaspora, the global fashion houses in the U.K. will probably start adopting lot of the traditional fabrics and textiles from the region, Deputy Head of Inward Investment for South India and Deputy Head at the British Deputy High Commission in Hyderabad, Siddharth Vishwanathan said.
Big retailers in the U.K. from Marks and Spencers and Tesco, on the back of the slashing of tariffs under the CETA, are likely to source more. From garments, jewellery, textiles to leather, sourcing of a number of products from India is set to increase, British Deputy High Commissioner to Karnataka and Deputy Trade Commissioner for Investment, South Asia Chandru Iyer said. Pharmaceuticals and Life Sciences will gain with reduction in tariffs. The agreement will also open up vistas for British drugmakers looking to sell in India, Mr.Iyer said, adding the trade deal is an enabler, a win-win for both sides and created a sense of optimism and positivity.
Apart from enhanced sourcing from India, the agreement will see a lot of U.K. products available in India, from cosmetics to confectionery, he said. Vishwanathan added for India’s pharma industry the CETA is not only about export but also collaboration in terms of research and development. Precision engineering, especially in the area of defence and aerospace, is another area expected to see greater collaboration. To a query on immigration, he said India is one of the largest recipients of U.K. visa. “We also have agreed on a special kind of visa... [under which] 1,800 visas annually will be available for chefs, yoga teachers and classical musicians.” A delegation led by Mr.Iyer also met IT and Industries D.Sridhar Babu and underscored the role of State governments in creating awareness about the agreement.
The Minister’s office, in a release on the meeting, said Mr.Sridhar Babu said Telangana offers favourable conditions for investment in industrial manufacturing, Life Sciences, aviation, defence, IT, semiconductors, chip design and electronics. The CETA present an opportunity to increase exports significantly, to the U.K., from the existing ₹ 3,553 crore.
The BriefWire