Boost for Indian Tyre Industry: India-UK Free Trade Agreement Spurs Growth

The competitiveness of Indian tyre manufacturers is set to soar in the British market following the removal of import duties, a result of the India-UK free trade agreement, the Automotive Tyre Manufacturers' Association (ATMA) announced on Tuesday.

Welcoming the Comprehensive Economic and Trade Agreement (CETA), ATMA noted it significantly enhances bilateral trade, particularly benefitting the Indian tyre sector.

'The removal of import duties on tyres by the UK under CETA will strengthen Indian tyre manufacturers' competitiveness,' stated ATMA Chairman Arun Mammen.

Mammen added that this enables Indian companies to capitalize on strong export momentum and deepen their presence in developed markets.

Under the CETA, all customs duties on tyres and rubber products exported from India to the UK are immediately eliminated.

This move is expected to boost Indian tyre exports by enhancing price competitiveness and market access to the UK, a key European market.

India exported tyres worth Rs 732 crore to the UK in FY2024-25, marking an 11% year-on-year increase from Rs 660 crore in FY2023-24. This continues the previous fiscal's 10% growth, where exports were Rs 602 crore in FY2022-23.

The elimination of duties is seen as maintaining and accelerating this upward trend.

Additionally, the agreement offers a phased tariff liberalization for UK tyre imports into India, placed in the E10 staging category, with duties reducing over ten years.

This balanced approach provides export opportunities while gradually opening the Indian market.

Mammen remarked the dual framework of immediate export advantages and phased tariff relaxation promotes long-term industry sustainability.

ATMA highlighted that the Indian tyre industry, already a substantial exporter with over Rs 25,000 crore in exports for FY2024-25, stands to benefit significantly from the CETA.

(With inputs from agencies.)