India UK Trade Agreement Set to Boost Hyderabad and Warangal Exports

The India–U.K. Comprehensive Economic and Trade Agreement (CETA), which entered into force on July 15, is expected to significantly boost exports from Hyderabad and Warangal by slashing tariffs and driving demand for local textiles, pharmaceuticals, and agricultural products.

Siddharth Vishwanathan, the Deputy Head of Inward Investment for South India and Deputy Head at the British Deputy High Commission in Hyderabad, stated that textile belts in Warangal and Mangalagiri stand to benefit. He noted that global fashion houses in the U.K. are likely to adopt traditional fabrics and textiles from the region, driven by demand from the Indian diaspora.

Major British retailers, including Marks and Spencer and Tesco, are expected to increase their sourcing of garments, jewellery, textiles, and leather from India following the reduction of tariffs. Chandru Iyer, the British Deputy High Commissioner to Karnataka and Deputy Trade Commissioner for Investment, South Asia, termed the trade deal a win-win enabler that has created optimism on both sides.

The agreement is also projected to encourage British companies to establish Global Capability Centres (GCCs) in Hyderabad. Beyond exports, the CETA is expected to foster research and development collaboration in the pharmaceutical sector, as well as precision engineering within the defence and aerospace industries.

A delegation led by Mr. Iyer met with Telangana IT and Industries Minister D. Sridhar Babu to discuss the implementation of the agreement and the role of state governments in building awareness. During the meeting, Mr. Sridhar Babu highlighted Telangana's favourable investment conditions in industrial manufacturing, life sciences, aviation, defence, IT, semiconductors, chip design, and electronics.

According to an official release from the Minister’s office, the trade agreement presents an opportunity for Telangana to significantly increase its exports to the U.K. from the current figure of Rs 3,553 crore.

Additionally, the deal introduces a special visa category, making 1,800 visas available annually for Indian chefs, yoga teachers, and classical musicians looking to work in the U.K.