Gujarat Businesses Urged to Capitalise on Expanding Global Trade Agreements
Gujarat Deputy Chief Minister Harsh Sanghavi has urged the state’s business community to collaborate closely with the government to capitalise on newly opening international markets, highlighting significant potential for young entrepreneurs.
What Happened
Speaking to reporters in Surat, Gujarat Deputy Chief Minister Harsh Sanghavi called on local industries to seize emerging trade avenues created by national trade initiatives. His statements coincide with India expanding market access through agreements with major economies, including the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 15.
The Ministry of Commerce and Industry noted that the agreement grants zero-duty access to the United Kingdom for nearly 99 per cent of India’s exports. Following the pact’s implementation, the initial export consignments—comprising plain and studded gold jewellery alongside cotton embroidered fabrics—were dispatched from the Surat Diamond Bourse on July 15, according to the Press Information Bureau.
Key Highlights
- Trade Agreement Scope: The India-UK CETA provides zero-duty market access covering almost the entire value of trade across 99 per cent of Indian export lines.
- Target Export Hubs: Surat and Ahmedabad have been identified by authorities as major gems and jewellery manufacturing clusters set to gain from the pact.
- Export Projections: Official estimates place India’s gems and jewellery exports to the UK at USD 1.03 billion out of the UK’s total annual jewellery imports of approximately USD 4 billion. Tariff reliefs could potentially double these exports over the next two to three years.
- National Trade Figures: Commerce Ministry data shows India’s combined goods and services exports reached a record USD 863.1 billion in FY 2025-26, with merchandise accounting for USD 441.8 billion and services contributing USD 421.3 billion.
Why This Matters
The implementation of free trade agreements is designed to diversify export destinations and widen market entry for labour-intensive sectors. Major industrial centres in Gujarat, particularly Surat’s diamond, gems, jewellery, and textile hubs, stand to benefit directly from reduced tariff barriers in key overseas destinations like the UK.
What to Watch Next
Industry stakeholders and government agencies will monitor export volumes from clusters in Surat and Ahmedabad over the next two to three years to evaluate whether gems and jewellery shipments to the UK achieve the projected doubling under the CETA framework.
Frequently Asked Questions
When did the India-UK Comprehensive Economic and Trade Agreement take effect?
The trade agreement officially came into force on July 15.
What products were included in the first consignments from Surat under the pact?
The initial shipments flagged off from the Surat Diamond Bourse included cotton embroidered fabrics as well as studded and plain gold jewellery.
What were India’s total export figures for FY 2025-26?
According to the Commerce Ministry, total exports of goods and services reached USD 863.1 billion, consisting of USD 441.8 billion in merchandise and USD 421.3 billion in services.
Source: Based on official statements and data reported by ANI and the Ministry of Commerce and Industry.