India-UK Free Trade Agreement will give a fillip to engineering exports, double trade by 2030

India’s key gain from the Free Trade Agreement signed with the UK lies in engineering products, medical equipment and metals.

The UK is New Delhi’s sixth-largest engineering export market, and the pact opens up new opportunities. While the UK’s global engineering imports stand at $193.52 billion, only $4.28 billion comes from India. With tariffs reduced from 18 per cent to zero, India expects its engineering exports to the UK to double in the next five years, reaching over $7.5 billion by 2029-30.

Key engineering products such as electric machinery, auto parts, industrial equipment and construction machinery are projected to grow at rates between 12 per cent and 20 per cent. The agreement aligns with India’s broader goal of achieving $250 billion in engineering exports by 2030.

Non-ferrous metals, including copper, aluminium, nickel, zinc, lead, tin and other base metals, will also enjoy zero-duty access to the UK. All tariffs on industrial and electrical machinery have been eliminated, providing Indian manufacturers a foothold in global supply chains.

In the automotive sector, conventional vehicles and auto components will benefit from duty-free access, as will medical devices and renewable energy equipment.

Aerospace and defence products have been fully liberalised, facilitating exports of aircraft components and defence industry equipment. In textiles, the removal of tariffs enhances India’s competitiveness against rivals like Bangladesh and Vietnam.

Additionally, India secures improved market access in sectors where it already holds strong export potential but previously faced moderate tariff barriers. Duties of up to 20 per cent have been eliminated on seafood, dairy, meat products, edible oils, oilseed derivatives and other plant-based commodities.