India's recent trade deals with UAE, Switzerland, and now with United Kingdom marks a significant shift in its approach to free trade agreements (FTAs) as India is gradually opening up sensitive areas that were earlier off-limits, according to a report by Global Trade Research Initiative (GTRI). The report highlighted that these areas are government procurement, intellectual property rights, automobile, data and services. The UK agreement is particularly notable because it pushes past longstanding red lines that India had maintained on domestic regulation and policy space. As India continues to negotiate with countries like the US and EU, these changes could set important precedents. GTRI said "India's recent trade deals--with the UAE, Switzerland, and now the UK--are following a pattern. Each agreement goes deeper into sensitive areas, opening new sectors, and giving up control over important policy spaces" One of the most significant features of the India-UK FTA is the introduction of a Tariff Rate Quota (TRQ) system for UK-made passenger cars. This is India's first-ever automobile tariff concession in any trade agreement. Under this, India has agreed to reduce customs duty on large-engine petrol cars (above 3000 cc) and diesel cars (above 2500 cc), typically high-end luxury vehicles, from over 100 percent to just 10 percent over a period of 15 years. The quota for such imports will start at 10,000 units and rise to 19,000 units by the fifth year. While these reduced duties apply only to vehicles within the TRQ quota, those outside the quota will continue to face high tariffs ranging from 95 percent to 50 percent depending on the vehicle type and year. This creates a preferential path for UK brands like Jaguar and Land Rover, owned by Tata Motors, and could invite similar demands from other trade partners like Japan, the EU, South Korea, and the US. The India UK agreement also brings major changes in the government procurement space. For the first time, India has agreed to open around 40,000 high-value contracts from central ministries and departments to UK bidders. These contracts span sectors like transport, green energy, and infrastructure. This marks a sharp departure from India's traditionally protectionist approach in public procurement and signals greater openness in the future. In the Intellectual Property chapter, India has made a major concession by accepting language that could restrict its ability to issue compulsory licenses, a key tool used during public health emergencies to make life-saving medicines and technologies more affordable. India has agreed to include wording that stresses the need for "adequate remuneration" to patent holders, aligning with Article 31(h) of the TRIPS Agreement. Although this principle already exists in global IP norms, its explicit inclusion in a bilateral agreement makes it a binding obligation and could limit India's policy flexibility under domestic law. India has also opened up important segments of its services economy to British firms. These include accounting, auditing, financial services (with FDI in insurance capped at 74 per cent), telecom (allowing 100 per cent FDI), environmental services, and auxiliary air transport. UK companies can now offer services like telecom and construction in India without establishing a local presence, and they will receive national treatment, meaning they will be treated the same as Indian companies. India has also agreed to recognize UK professional qualifications in fields such as law and accounting, although the legal services market remains closed. Overall, the GTRI noted that India-UK trade agreement is more than just a commercial deal, it reflects a shift in India's trade policy, where it is beginning to allow greater foreign access in key sectors. While these moves open up new economic opportunities, they also bring challenges and set precedents that could shape India's future trade relationships with other global partners.
Source: The Economic Times
India is making "fantastic" progress in trade talks with the United States, Commerce Minister Piyush Goyal told Reuters on Thursday, adding he was very confident that India would get special treatment from President Donald Trump. Trump threatened a 26 per cent tariff on Indian imports in April but paused implementation to allow for talks. That pause ends on August 1, though India has yet to receive a formal tariff letter, unlike more than 20 other countries. Earlier this week two Indian government sources said the prospects of an interim trade deal before the deadline had dimmed, as talks remain deadlocked over tariff cuts on key agricultural and dairy products. In an interview during a visit to London, Goyal played down the importance of deadlines in trade talks but struck a bullish tone on how negotiations with the United States were going. "We're making fantastic progress with the United States, and I do hope we'll be able to conclude a very consequential partnership," Goyal said. Asked about possible disagreement with Washington over agriculture, Goyal said that "negotiations happen in the negotiation room but said India wouldn't necessarily hold out for a comprehensive deal if smaller sectoral wins were possible. "All options are on the table, and we will see how it plays out, but what is important is to get preferential market access over our competitors, our peers," he said. "And I'm very confident that India, having been the first country to start negotiating, will be given a special and preferred treatment." On Wednesday Trump announced a deal with Japan which lowers auto tariffs, though medicines and semiconductors will be negotiated separately. Goyal was in London after signing a free trade deal with Britain, which has also negotiated sectoral tariff relief with the White House. But while other countries may have secured deals with Trump ahead of India, despite Prime Minister Narendra Modi's efforts in February to kickstart trade talks with a White House visit, Goyal played down the significance of deadlines. "I don't think any of the negotiations ever worked with deadlines or the preconceived limitations," Goyal said, adding he wanted a win-win deal. "One has to have a broad mind and a package which is balanced and can give equity to both sides."
Source: The Economic Times
The India-UK Comprehensive Economic and Trade Agreement (CETA) is poised to level the playing field for Indian textile and clothing exporters, who previously faced duties of 10-12% in the UK market. This agreement is expected to boost India's market share, benefiting various weaving units and artisan clusters across the country.
Source: The Economic Times
India and the UK signed a Comprehensive Economic and Trade Agreement (CETA) with the aim of doubling imports and exports to more than $100 billion by 2030 from $56 billion now, marking the first of several key accords the Narendra Modi government expects to reach amid global upheaval sparked by US President Donald Trump’s tariffs. Next up is likely a bilateral trade agreement with the US; both sides are said to be close to a pact. The CETA with the former colonial power is India’s 16th such trade pact and will remove taxes on labour-intensive products such as leather, footwear and clothing in the British market, unlocking nearly $23 billion in opportunities. Similarly, whisky and cars from Britain will be cheaper in India.
The agreement between the world’s fourth- and sixth-largest economies was signed in the presence of Prime Minister Narendra Modi and his British counterpart Keir Starmer after three years of negotiations amid the Trump-led.
Source: The Economic Times
For the first time, India will open approximately 40,000 high-value contracts from central ministries and departments in sectors such as transport, green energy and infrastructure to UK bidders. UK-origin goods with just 20% domestic content will be treated as 'Class II' local suppliers under India's Public Procurement Order (PPO), a classification previously reserved for Indian suppliers with 20-50% local content under the CETA. India will offer concessions in government procurement to UK firms under the free trade agreement, a move experts see as a strategic shift away from using public procurement as a tool for domestic industrial development. After the UAE, India has opened its central government procurement for British companies, subject to certain conditions. on par with UK suppliers regarding social value considerations within procurement processes, ensuring a level playing field for Indian businesses to compete fairly," said an official.
Source: The Economic Times
India has opened key segments of its services sector to British firms, granting access in areas, such as accounting, auditing, financial services, telecom and auxiliary air transport, think tank GTRI said on Thursday. However, all key areas of India's interest like IT, business services such as management consultancy, advisory, professional including accountancy, engineering, telecom, financial, education and health are covered in the pact. It said the UK companies can now offer telecom, construction, and related services in India without needing to establish a local presence, and they are entitled to national treatment, meaning they will be treated on par with Indian firms. India also agreed to recognise UK professional qualifications in select fields like law and accounting (though legal services remain closed), the Global Trade Research Initiative (GTRI) said. While India has made commitments on market access across 108 sub sectors in services, the UK has made commitments across 137 sub sectors, practically covering more than 99 per cent of India's exports, a commerce ministry official said.The agreement, the GTRI said, ensures no caps on the number of UK service providers, and offers commercial presence rights (Mode 3) across multiple domains. However, India retained key regulatory carve-outs, especially in legal services, taxation, and national security, and still lacks full mutual recognition frameworks in most regulated professions. "In contrast, the UK's services offer to India is more cautious and limited in scope," GTRI Founder Ajay Srivatava said, adding that while it grants commercial presence rights in sectors like computer services, consultancy, and environmental services, its commitments on professional mobility are modest. The UK has offered an annual quota of 1,800 visas for niche roles like yoga instructors and classical musicians, but it has not made binding commitments on broader visa categories, including business visitors or IT professionals. "The UK's refusal to restore post-study work visas is a disappointment for Indian students, and the FTA does not override the UK's points-based immigration system -- meaning Indian professionals must still meet regular education, salary, and job offer thresholds," Srivastava said. A key positive is the Double Contribution Agreement, which allows over 75,000 Indian workers on short UK assignments to continue paying into India's social security system without dual contributions. "However, this is a temporary fix, and a comprehensive totalisation agreement remains pending. Overall, the UK's services package shows reluctance to ease mobility for Indian professionals -- one of India's core demands," he added.
Source: The Economic Times
Integrated textile firm AB Cotspin India has announced plans to invest up to ₹ 1,500 crore to significantly expand its manufacturing capacity. The investment will be funded through a combination of bank financing, internal accruals, and government incentives, ensuring a robust and balanced capital structure, the company said in a stock exchange filing.
"This strategic project covers a wide spectrum: acquiring land on lease; setting up state-of-the-art manufacturing plants for spinning, ginning, yarn manufacturing, and processing; developing modern warehousing and logistics infrastructure; and building facilities for the sustainable utilisation of by-products," it said. A key pillar of the project is reinforcing the company's commitment to green manufacturing through renewable energy adoption including its existing solar energy investments and aggressive resource optimisation, AB Cotspin said. "Doubling our spindle capacity is not just about scale; it's about enhancing our integrated, sustainable manufacturing ecosystem. This expansion will significantly strengthen our domestic and international market position, drive sales growth, and improve profitability," said Deepak Garg, Managing Director, AB Cotspin India. The firm said the planned capital expenditure is tailored to meet growing domestic and international demand for high-quality cotton yarn and eco-friendly textile solutions. AB Cotspin, listed on NSE Emerge recently completed three years of listing and is now eligible for migration to the main board. AB Cotspin posted a 17 per cent year-on-year increase in revenue in FY25 at ₹ 300.91 crore. Its net profit rose 52.27 per cent to ₹ 10.21 crore. The company has over 25 yea₹ of expertise in spinning, ginning, yarn manufacturing, and processing.
Source: Business Standard
The General Authority for the Suez Canal Economic Zone (SCZONE) has signed three new project agreements with leading Chinese companies operating in the textile and ready-made garments industries, securing total investments worth approximately $52.6 million. The agreements are expected to generate 3,500 direct job opportunities within the Qantara West Industrial Zone. The signing ceremony took place in Nanjing, Jiangsu Province, as part of SCZONE’s promotional roadshow across several Chinese provinces, aimed at deepening industrial ties and attracting further Chinese investments into priority sectors within the zone, SCZONE said in a press release. The first agreement was signed with Changzhou East Noah Printing and Dyeing co, ltd, a prominent player in textile printing, dyeing, and finishing. The company will establish an integrated textile facility on an 80,000-square-metre plot in Qantara West, with $20 million in fully self-financed investment. The factory will cover the full production process—ranging from ultra-fine polyester yarns to weaving, printing, dyeing, and finishing—producing items such as blankets, bed sets, and quilts. It is projected to have a daily capacity of 80 tonnes and an annual output of 8 million home textile pieces, with 90 per cent of production aimed at export markets. The project will provide 1,000 direct jobs. A second agreement was signed with Changzhou Golden Spring Textile co, ltd, a globally recognised integrated textile manufacturer. The company will invest $24 million to establish a textile facility on an 85,000-square-metre site in the same industrial zone. This fully self-financed venture will focus on manufacturing high-quality blankets, bed linen, and padded quilts. With an annual capacity of 15,800 tonnes of fabric and 2 million finished products, 90 per cent of its output will be exported to the Middle East, North Africa, Europe, and the Americas. The project is expected to create 1,000 new jobs. The third deal was struck with Jiangsu Sainty Corporation Ltd, a subsidiary of SOHO Holding Group, to set up a readymade garments factory on a 40,000-square-metre plot in Qantara West. Backed by an $8.6 million investment, the facility will focus entirely on exports and is projected to employ 1,500 people. With over 40 years of industry experience, Jiangsu Sainty exports garments to nearly 100 countries, including the US, EU, and Canada. “The signing of these three projects comes as part of our ongoing fruitful cooperation with the Chinese business community, one of SCZONE’s strategic partners in achieving its development objectives. With these new agreements, the number of Chinese projects in Qantara West Industrial Zone has increased to 18,” said Waleid Gamal El-Dien, chairman of SCZONE. “The textile sector is considered one of SCZONE’s top priority industries due to its high potential for integration with auxiliary industries and its labour-intensive nature.” He further stated that the industrial zone now hosts 28 contracted projects, representing total investments of around $734.1 million over a combined area of 1,794,400 square metres. These projects are expected to collectively create 38,455 direct job opportunities, added the release.
Source: Fibre2fashion
The European Union (EU) and Japan recently agreed to continue to strengthen collaboration on trade, industrial policy and economic security in the expanded High-Level Economic Dialogue. Their collaboration includes addressing threats to the resilience of supply chains, strategic dependencies, economic coercion, non-market policies and practices, as well as overcapacity resulting from them, promotion and protection of critical and emerging technology, research security, physical and cyber security of critical infrastructure, and export control, particularly concerning critical minerals, that pose economic security risks to both sides.
The 30th EU-Japan Summit in Tokyo was held yesterday.
Both sides will accelerate cooperation on development and implementation of standards and criteria for products that take into account the G7 Principles on Resilient and Reliable Supply Chains of transparency, diversification, security, sustainability, trustworthiness and reliability on a sector-by-sector basis, a joint statement issued at the conclusion of the Summit said. Both sides will work towards promoting investment opportunities to reinforce strategic complementarities in mutually decided sectors. The strengthened EU-Japan Centre for Industrial Cooperation will support the implementation of the initiatives under the Competitiveness Alliance. They will explore the enhancement of decarbonised industrial cooperation and sustainable supply chains and will explore new joint programmes to support projects by leveraging policy measures like the EU's Net-Zero Industry Act and Japan's Green Transformation (GX) initiatives.
Source: Fibre2fashion
