[General Studies III: Economy ] [250 words, 15 Marks]

Answer Structure:

• Introduction: Trade benefits both India and U.K 
• Body: Advantages for India 
• Conclusion:  Importance of deal in the present global scenario

Answer

Introduction

The free trade deal between India and the UK will provide enhanced market access for a wide range of Indian goods and services in the UK. Similarly, British firms will also enjoy comparable benefits in the Indian market

Body

Advantages for India 

Enhanced Market Access 

The FTA ensures comprehensive market access for goods, across all sectors. India will gain from tariff elimination on about 99% of the tariff lines covering almost 100% of the trade value 

Improve Indian goods’ competitiveness in the UK vis-à-vis other countries

The FTA provides a positive impact on manufacturing across labour and technology-intensive sectors and opens up export opportunities for sectors such as textiles, marine products, leather, footwear engineering goods, auto parts and engines, organic chemicals ……. , 

It will have significant positive gains for employment in India. 

Safeguarding sensitive Sectors

Sensitive agri-products like dairy products, apples, cheese, oats, animals and vegetable oils are on the exclusion list 

Opening up new opportunities and jobs in the Service sector 

FTA commitment from the UK in Services such as IT/ITeS, financial services, professional services, other business services and educational services opens new opportunities and jobs.

The FTA eases mobility for professionals  and Independent Professionals, which provides Immense opportunities for talented and skilled Indian youth in the UK 

Double Contribution Convention.

India has secured an exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK . Indian companies and employees would benefit more than Rs 4,000 crore.

Conclusion

The deal between India and the UK is particularly important in a global environment of rising trade tensions and highlights the critical role of partnerships for shared progress and prosperity.

 (The model answer provided above strictly follows the word limit, the above answer is compiled in 279   words.)

Practising answers sticking to the word limit will aid the aspirants to write answers precisely and to the point by avoiding unnecessary things. 

(Titles introduction, body and conclusion are just for reference, aspirants should not write these titles in the answer sheet.)