These 8 sectors are set to benefit from historic multi-billion-pound India-UK trade pact   India and the United Kingdom have finalised a free trade agreement after 14 rounds of negotiations over three years. The deal is expected to take bilateral trade to $120 billion by 2030 and marks a major step forward in India’s post-Brexit engagement with the UK. While it will majorly contribute to Britain’s economy, the FTA will benefit India in significant ways. Prime Minister Narendra Modi said that the landmark pact will catalyze trade, investment, growth and job creation in both the economies. As per the agreement, sectors like textiles, auto parts, IT services, pharmaceuticals, gems & jewellery, leather, and engineering goods are among the key sectors set to gain from tariff cuts and improved UK market access. The ministry release stated, “The FTA ensures comprehensive market access for goods, across all sectors, covering all of India’s export interests. India will gain from tariff elimination on about 99 per cent of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK.” Auto sector: Indian tariffs on automotive imports will fall from over 100 per cent to 10 per cent. Further, the two countries will also introduce quotas for auto imports. This is expected to make premium UK vehicles more accessible to Indian consumers. In terms of auto companies, players like Tata Motors (sales boost for Jaguar Land Rover in India), Eicher Motors (Royal Enfield), TVS Motors and others like Endurance Technologies, Sundram Fasteners, Motherson Sumi Systems, are likely to benefit the most.  IT sector: The FTA will facilitate easier entry for Indian IT firms and professionals, and this is expected to benefit over 60,000 professionals annually in the IT sector alone, the commerce ministry stated. Due to enhanced mobility and market access, IT firms like TCS, Infosys, HCL Tech, Tech Mahindra and Wipro stand to benefit. Pharma sector: The FTA is expected to ease regulatory approvals for generic drugs, boosting Indian pharma exports. On this, pharma majors like Dr. Reddy’s Laboratories, Cipla, Lupin and Sun Pharma are set to gain the most. Industrial and engineering goods sector: With the new trade agreement in place, Indian suppliers are expected to see increased demand from UK infrastructure and manufacturing sectors. On the back of this, companies like Cummins India, Thermax, L&T, ABB India stand to benefit. Alcobev sector: The government has agreed to halve the import duty on Scotch and British gin to 75 per cent while also making made-in-India blended whisky cheaper. Praveen Someshwar, MD & CEO, Diageo India, said, “We welcome the historic agreement between UK & India. Our congratulations to Prime Minister Modi and Prime Minister Starmer. The landmark treaty will enable improved accessibility and choice of scotch for the Indian consumers, the largest and most exciting whisky market.” The top stocks to watch in this sector include United Spirits, Radico Kaitan, Allied Blenders. Textiles sector: The India- UK FTA has eliminated tariffs on Indian textiles, and with this the competitiveness in the UK market is set to improve for several firms. Companies like Vardhaman Textiles, Welspun India, Gokaldas Exports, Raymond, Page Industries are expected to benefit the most from this. Agri and food sector: The tariff concessions for Indian tea, spices, and ready-to-eat products will help improve market access for Indian manufacturers and brands. On this, companies like Tata Consumer Products, Nestle India, Hindustan Foods, KRBL and LT Foods stand to benefit. Gems and Jewelleries: The India-UK FTA will increase India’s exports of gems and jewellery to the UK market. Exports to the UK are expected to reach $2.5 billion within two years and this agreement could double the total bilateral trade in gems and jewellery to $7 billion. Companies like Titan Company, Kalyan Jewellers and Rajesh Exports are likely to be the top beneficiaries.Read more at: https://www.financialexpress.com/business/industry-these-8-sectors-are-set-to-benefit-from-historic-multi-billion-pound-india-uk-trade-pactnbsp-3835664/ (ICE MUMBAI)

Fonte notizia: The Financial Express