India-UK FTA Spurs Engineering Exports Boom
The Free Trade Agreement between India and the UK has eliminated tariffs on engineering goods, boosting export potential. This agreement is expected to nearly double engineering exports to the UK in five years, reaching USD 7.5 billion. Engineering exports, notably electric machinery and auto parts, stand to gain significantly.
- Country:
- India
The recent Free Trade Agreement (FTA) between India and the UK has led to the removal of the 18 percent duty on engineering goods, a significant development poised to increase the competitiveness of exports from India.
The elimination of tariffs, formalized on Thursday, could result in nearly double the engineering exports to the UK in the next five years, as noted by a commerce ministry official. Projections indicate that exports could surpass USD 7.5 billion by 2029-30. The UK ranks as India's sixth-largest market for engineering exports, which witnessed a robust 11.7 percent growth in 2024-25 compared to the previous year.
India's global engineering exports currently stand at USD 77.79 billion, whereas the UK imports USD 193.52 billion worth of such products, yet only USD 4.28 billion comes from India. This highlights a substantial potential for growth in the sector, particularly for electric machinery, auto parts, industrial equipment, and construction machinery. The FTA is set to provide transformative opportunities across sectors, reducing compliance costs and enhancing market competitiveness for Indian exporters.
(With inputs from agencies.)
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