India-UK Free Trade Agreement: Engineering Exports Set for Major Boost

The India-UK Free Trade Agreement (FTA) is a significant win for Indian engineering exports, eliminating tariffs up to 18% on key items and aiming to double exports to the UK by 2029–30. EEPC India hails this agreement as a strategic step toward achieving $250 billion in engineering exports by 2030.

The recently signed India-UK Free Trade Agreement (FTA) marks a transformative moment for Indian engineering exports, as per EEPC India, the engineering exporters' association. The agreement is anticipated to considerably strengthen bilateral economic relations.

Prior tariffs, which reached 18% on essential engineering items, have been lifted, thereby paving the way for substantial opportunities for Indian manufacturers, especially within sectors like electrical machinery, auto components, and construction machinery. India's exports to the UK are projected to nearly double, from $4.28 billion to over $7.5 billion by 2029–30.

The breakthrough is recognized as timely, with EEPC India Chairman Pankaj Chadha noting that the FTA opens new avenues for exporters, particularly MSMEs, while bolstering India's position in global value chains. The pact may also set a precedent for similar agreements worldwide, supporting India's $250 billion engineering export target by 2030.

(With inputs from agencies.)