UK-India Trade Deal Set to Boost Punjab's Industries

A new Free Trade Agreement (FTA) between India and the UK is creating excitement in Punjab, especially in Ludhiana, the state’s manufacturing powerhouse. Signed recently, this deal removes tariffs on nearly all Indian exports to the UK, giving local businesses a big opportunity to grow.

The agreement is expected to double trade between the two countries to 120 billion USD by 2030. Punjab’s textile, auto parts, and gem and jewellery industries are gearing up for a major boost. Amit Jain, head of the Confederation of Indian Industry (CII) in Punjab, called it a “game-changer.” He said, “Ludhiana’s textile industry will gain significantly from tariff-free access to the UK market,”

In Ludhiana, known for its bustling factories, business owners are thrilled. The FTA could create thousands of jobs, especially in textiles and jewellery, which are big employers. The gem and jewellery sector alone expects its UK exports to jump from 400 million USD to 1 billion USD a year in just two years, thanks to lower taxes on their products.

Commerce Minister Piyush Goyal said the deal will “create three times more jobs” by opening up trade in goods and services. It’s a step toward India’s goal of becoming a developed nation by 2047. But there’s a catch: the agreement still needs approval from the UK Parliament, which could take up to a year.

While the future looks bright, Punjab’s industries face some hurdles. Experts say businesses need to work together more and form cooperative groups to make the most of government support. Without this, they might miss out on the full benefits of the FTA.

For now, Ludhiana’s manufacturers are optimistic. This trade deal with the UK is a golden opportunity to put Punjab’s industries on the global map, bringing growth and jobs to the region.