The India-UK Free Trade Agreement (FTA), officially the Comprehensive Economic and Trade Agreement (CETA), will usher in a new era of economic cooperation and technology partnerships for the automotive sector, the Automotive Component Manufacturers Association of India (ACMA) stated. 

ACMA President Shradha Suri Marwah highlighted that the FTA will enhance export opportunities for Indian auto components, particularly in electric mobility, precision engineering, and lightweight materials, by streamlining regulatory processes. “Indian MSMEs, the backbone of the auto industry, will gain from liberalized trade terms and improved UK market access,” she said. Marwah also emphasized potential collaborations in R&D, skilling, and green technologies, critical for the sector’s competitiveness and sustainability.

TVS Motor Company noted the deal aligns with India’s ‘Make in India’ initiative, supporting its launch of Norton Motorcycles in the UK post-acquisition. The FTA, finalized after negotiations concluded on May 6, 2025, eliminates duties on 99% of Indian exports, including auto parts, previously facing up to 18% tariffs. With the UK importing $193.52 billion in engineering goods, India’s $4.28 billion share is poised to grow significantly.

Also Read: India-UK FTA to Double Engineering Exports to $7.5B by 2030

Posts on X reflect optimism, with users noting cheaper UK car imports and enhanced Indian auto exports, though some urge focus on skill development to maximize benefits. The agreement positions India’s auto sector, valued at $74 billion, to strengthen global value chains and innovation.

Also Read: India-UK FTA to Propel Garment Exports, Job Creation: AEPC