Thiruvanthapuram | The free trade agreement signed by India and the United Kingdom would present both opportunities as well as challenges to the Micro, Small and Medium Enterprises (MSME) sector in the country, especially in Kerala, state Industries Minister P Rajeev said on Wednesday.
The tariff-free access to the UK market for the state's key economic components- -apparel, marine, and leather products- -under the new agreement would significantly boost their global competitiveness, he told the Assembly.
Rajeev was replying to a question regarding the impact of the recent landmark FTA, signed by India and the UK, upon the micro- and small-scale industries in the country and the state.
According to him, Kerala is also likely to get more opportunities in the export of coffee, tea and spices to the UK as part of the agreement.
Chances are high for the creation of more jobs, opportunities for modernisation and exporting possibilities through this.
The minister, however, pointed out that the agreement may pose challenges to certain micro-small-scale industries.
The competition from the UK and the increased production cost may adversely impact them, he said, adding that technical updates would also become inevitable for many such micro-small-scale industries to enter the foreign market.
Rajeev further said the government is on a mission to implement a "smart economy" approach in the state, eyeing the comprehensive development of small-scale industries.
In July, India and the UK inked a landmark free trade agreement (FTA) that would cut tariffs on British whisky, cars and an array of items, besides boosting bilateral trade by around USD 34 billion annually.
