CETA: Export consignment flagged from Bengaluru to UK

Bengaluru, Jul 15 (PTI) With the Comprehensive Economic and Trade Agreement (CETA) between India and the UK coming into effect on Wednesday, an export consignment that included electronic products was flagged off from here to the United Kingdom. The agreement, signed in July last year, is expected to at least double bilateral trade from the current level of about 48 billion pounds annually by 2030 while boosting long-term economic growth in both countries. According to Karnataka Large and Medium Industries Minister M B Patil, the agreement is expected to provide a major boost to the state's biotechnology, pharmaceuticals, textiles and garments, marine products, engineering goods and machinery sectors. He added that premium coffee grown in Chikkamagaluru and Kodagu, along with the state's spice industry, would also benefit from the agreement. Patil said in a statement that, under the agreement, 99 per cent of Indian products will enjoy duty-free access to the UK market. The statement said the agreement covers nearly all the sectors in which Karnataka has a competitive advantage, while its Mode 1 services provisions would significantly benefit Bengaluru's IT industry. Several British companies are expected to establish their Global Capability Centres in Bengaluru and Mysuru in the coming years, he said. He said Belagavi, besides Bengaluru, is expected to benefit significantly from opportunities in the aerospace sector. Patil said the agreement would reduce UK import tariffs on aerospace products from 11 per cent to zero, automotive products from 110 per cent to zero, electrical machinery from 22 per cent to zero, and medical devices from 13.75 per cent to zero. He added that tariffs on certain other products would also be phased out over the next five to six years. He said exports of oilseeds, black pepper, cardamom, Byadagi and Devanur chillies, millets, flowers, fruits, vegetables, fish, coconuts, mangoes, lemons, jasmine, marigold and premium coffee from Kodagu and Chikkamagaluru would no longer attract import duties in the UK market. Processed agricultural and food products manufactured in Hassan, Bidar and Bengaluru Urban districts would also enjoy duty-free access to the UK market, he added. Patil said the agreement would benefit small industries, as well. To help them make the most of its provisions, the state government will conduct a dedicated awareness programme for Karnataka's coffee growers, garment manufacturers and MSME exporters, he said. The minister said Karnataka would further strengthen its partnerships with the UK in aerospace and defence, advanced manufacturing, electric mobility, clean energy, semiconductors, deep technology and Global Capability Centres. The state government will organise investment roadshows in the UK to attract British investors, he added. The statement quoted British Deputy High Commissioner Chandru Iyer as saying that leading UK varsities such as the University of Liverpool, Lancaster University, Birkbeck, University of London, and Imperial College London are set to establish campuses in Karnataka. Iyer said that The King's School, Canterbury, and RGS Guildford would establish school campuses in the state. He said there are 34 direct flights a week between Bengaluru and London, and the frequency is expected to increase further in the coming years. The statement said Iyer flagged off a consignment of Jindal aluminium and electronic products bound for the United Kingdom from the Inland Container Depot at Whitefield in Bengaluru. Dona Ghosh, Joint Director General of Foreign Trade, and Sucheta Sreejesh, Commissioner of Customs, were present on the occasion. PTI GMS SSK SA