Introduction to the India-UK Trade Agreement

The recently signed India-UK Free Trade Agreement marks a significant milestone in international trade relations, focusing on promoting “Brand India” globally. This comprehensive economic and trade agreement, signed in London with the presence of Prime Minister Narendra Modi and British Prime Minister Keir Starmer, is set to double bilateral trade to $120 billion by 2030. The agreement emphasizes the export of labor-intensive Indian products like Kolhapuri chappals, Banarsi textiles, and Chanderi fabrics at concessional rates to the UK, thereby enhancing India’s global presence.

Gender-Inclusive Trade Framework

A notable feature of this trade deal is its focus on gender equality. New Delhi has incorporated provisions to boost trade opportunities for women entrepreneurs, business owners, and workers. This shift in policy aims to empower women economically and promote gender equality through trade. The UK government highlighted that this is India’s first-ever inclusion of chapters on anti-corruption, labor rights, gender, and development in a free trade agreement.

Tariff Reductions and Market Access

The agreement includes significant tariff reductions, with India reducing 90% of its duties, allowing the average tariff on UK products to drop from 15% to 3%. In exchange, the UK will provide greater market access to Indian manufacturers. This move is expected to facilitate 99% of Indian exports, including textiles and leather goods, to enter UK markets duty-free.

Cultural Identity and Economic Impact

The trade deal aims to enhance India’s brand recognition and cultural identity while increasing artisans’ incomes, particularly for women-led businesses. It also addresses issues of cultural appropriation by ensuring proper attribution and compensation for Indian craftsmanship. An example of such appropriation was seen when global fashion brand Prada used Kolhapuri chappal designs without acknowledgment.

Economic Empowerment and Job Creation

By positioning India as a top supplier in labor-intensive sectors, the agreement is expected to boost job creation and financial independence for women. This strategic move not only strengthens India’s economic ties with the UK but also solidifies its position on the global map as a leader in artisanal products.