Signing of India-UK FTA marks breakthrough for Indian engineering exports: EEPC India
Engineering Export Promotion Council of India (EEPC India) has said that the signing of the India-UK Free Trade Agreement (FTA) marks a breakthrough for Indian engineering exports and is poised to significantly deepen bilateral economic ties.
Terming it as a ‘landmark achievement’, EEPC India noted that the FTA’s removal of tariffs--previously as high as 18 per cent on key engineering items--will unlock substantial opportunities for Indian manufacturers, particularly in high-growth sectors such as electrical machinery, auto components, industrial equipment, and construction machinery. India’s engineering exports to the UK, its sixth-largest destination, stood at $4.28 billion in FY25, accounting for just 2.2 per cent of the UK’s total engineering imports. The trade pact is expected to nearly double this figure to over $7.5 billion by 2029-30. The organisation believes this comprehensive trade pact with a major developed economy could serve as a template for future FTAs with other trading blocs and nations, supporting India’s broader goal of reaching $250 billion in engineering exports by 2030.
Meanwhile, aided by higher shipments of iron and steel, internal combustion engines, and two- and three-wheelers, India’s engineering goods exports returned to growth in June 2025, rising 1.35 per cent year-on-year to $9.5 billion. Cumulative exports in April-June (Q1 FY26) stood at $28.91 billion, up from $27.89 billion in the same period last year.
