India, UK FTA Transformative Opportunity for Coimbatore: CII Chairman

Mr Rajesh Duraiswamy, Chairman, CII Coimbatore and Joint Managing Director, Salzer Electronics Ltd welcomed the landmark India-UK Free Trade Agreement (FTA) signed on July 24, describing it as a transformative opportunity for Indian exporters and especially for the vibrant industrial ecosystem of Coimbatore. "This historic agreement eliminates steep tariffs, ranging from 8% to 16% and up to 70% for processed foods, granting immediate duty-free access to the UK, one of the world's most lucrative markets," said Mr Rajesh. "For Coimbatore's core sectors such as textiles, engineering goods, pumps and machinery, agro-products and IT services, the benefits are both immediate and far-reaching." 

The FTA is expected to drive significant growth in Coimbatore's exports. The removal of the 12% import duty on textiles and apparel is likely to boost the city's renowned knitwear and garment exports by 20%, unlocking an incremental annual opportunity of over ₹1,600 crore. 

Engineering and auto component exports, previously subject to duties up to 18%, are projected to nearly double from the current US$260 million to US$585 million by 2030. Coimbatore's identity as the pump capital of Asia also receives a major boost, with zero-duty access to the UK market expected to propel pump and machinery exports from ₹80 crore to ₹300 crore within three years. The agro and food processing sector stands to benefit enormously, as products such as coconut and coir, previously facing duties as high as 70%, will now enter the UK at zero tariffs, opening new avenues for local producers. The FTA brings significant advantages for the IT and services sector as well. 

With social security contribution waivers and enhanced professional mobility, companies in the region are expected to save approximately 309 crore annually, while also creating more high-skill employment opportunities. "Beyond tariff benefits, the agreement introduces streamlined customs procedures, digital documentation and simplified compliance measures, making it significantly easier for over 40,000 MSMEs in the region to access the UK market," Collectively, these measures are expected to catalyse the creation of over 130,000 direct and indirect jobs in and around Coimbatore, reinforcing Tamil Nadu's leadership in manufacturing and exports.

 "The India, UK FTA is a golden moment for Coimbatore and Tamil Nadu. It opens new doors for our dynamic MSME community, strengthens our global competitiveness and will drive fresh investments, skill development and job opportunities. CII Coimbatore stands firmly committed to supporting and guiding our members and the broader exporter community to fully leverage this historic opportunity,"