13 Lakh Vidarbha Traders Get a Duty-Free Route Into the UK

Traders across Vidarbha are eyeing the United Kingdom as their next big market now that the India-UK Comprehensive Economic and Trade Agreement (CETA) has come into effect, opening near duty-free access to one of the world’s largest premium consumer markets. The Nag Vidarbha Chamber of Commerce (NVCC), which represents 13 lakh traders across the region, says the pact could reshape the region’s trading prospects almost overnight.

NVCC former president Ashwin Mehadia said, ‘Now that exports from Vidarbha to the United Kingdom are starting with reduced tariff, new avenues of international trade will open for traders in Vidarbha and the region will see greater economic growth.’ He added that the agreement would also strengthen local producers’ pricing power in overseas markets.

NVCC vice-president Swapnil Ahirkar pointed to the breadth of goods the region already exports. ‘Rice, pharma, textiles, minerals and other products are exported from Vidarbha, and now the region is emerging as a big hub for service exports,’ Ahirkar said, describing a diversified base that traders can now build on with cheaper access to the UK.

Under CETA, 99% of India’s tariff lines will enter the UK duty-free from day one. Tariffs on gems and jewellery fall from 4% to zero, on pharmaceuticals from 8% to zero, on iron and steel from 10% to zero, and on textiles from 12% to zero, while agricultural products get 95% duty-free access on agreed tariff lines.

The pact is already showing results in the sector that matters most to many Vidarbha traders: gems and jewellery. A first consignment worth about USD 10 million was shipped to the UK as CETA came into force, involving 27 exporters from six major jewellery centres. All India Gem and Jewellery Domestic Council (GJC) chairperson Rajesh Rokde called it ‘a historic milestone for the Indian gems and jewellery industry,’ saying it would lift exports, investment, employment and India’s standing in the global market.

NVCC secretary Hemant Sarda struck a note of caution alongside the optimism, saying the region still needs stronger backing to make the most of the opening. ‘If the govt improves export infrastructure here, it will help increase exports of goods and services from Vidarbha. Trade agreements like CETA make products from here competitive,’ Sarda said. Trade between India and the UK currently stands at nearly USD 56 billion, with both countries aiming to double that figure by 2030.

Image credit: Wikimedia Commons / Ministry of Ports, Shipping and Waterways (GODL-India)