How the New India-UK Trade Agreement is Transforming Odisha's Seafood and Handicraft Industries

Bhubaneswar's Economic Boost from the India-UK Free Trade Agreement

Bhubaneswar: The recent Free Trade Agreement (FTA) between India and the United Kingdom is set to significantly enhance Odisha's coastal economy, particularly benefiting the seafood and handicraft sectors.

With the elimination of tariffs on 99% of Indian products under this comprehensive deal, Odisha stands to gain immensely. Officials have indicated that seafood exports from major ports like Paradip and Balasore are anticipated to rise sharply, especially in prawn exports, which previously faced tariffs between 4.2% and 8.5%. In the fiscal year 2024-25, India exported seafood valued at $104.43 million to the UK, with prawns making up 77% of that total.

The duty-free access provided by the FTA is expected to not only double India's maritime exports but also boost the earnings of Odisha's fishermen and aquaculture farmers. As export volumes increase, job opportunities, particularly for women involved in seafood processing, are likely to expand, as noted in a release from the PIB. Additionally, Odisha's traditional handicrafts and handlooms are projected to experience a significant rise in export activity.

Previously, the UK imposed a 16% duty on GI-certified handicraft items, but the FTA has abolished this tariff, giving Odisha's artisans a competitive advantage. With a growing demand for the state's handlooms and crafts in the global market, this agreement is expected to create new export pathways, enhance profitability, and generate jobs, especially in rural communities. Experts suggest that Odisha's rich heritage products, including Sambalpuri sarees and Pattachitra paintings, can now enter the UK market more easily and at improved prices.