The India-UK Free Trade Agreement (FTA), signed on Thursday, slashes duties on engineering goods from 18% to zero, paving the way for India’s engineering exports to the UK to nearly double to $7.5 billion by 2029-30, a commerce ministry official said. The deal, inked during Prime Minister Narendra Modi’s UK visit, positions India to capture a larger share of the UK’s $193.52 billion engineering import market, where India currently contributes $4.28 billion.

The UK, India’s sixth-largest engineering export market, saw an 11.7% trade growth in 2024-25. Engineering goods, spanning 1,659 tariff lines and 17% of the FTA’s scope, include electric machinery, auto parts, industrial equipment, and construction machinery, projected to grow at a 12-20% compound annual rate. “Zero tariffs reduce compliance costs and time-to-market, boosting competitiveness,” the official noted.

India’s global engineering exports, valued at $77.79 billion, stand to gain significantly, with the FTA offering a transformative opportunity, as per Commerce Minister Piyush Goyal. The agreement, signed with UK Business Secretary Jonathan Reynolds, is expected to add £25.5 billion to bilateral trade by 2040. Posts on X highlight optimism among exporters, with some urging focus on high-value products like precision machinery to maximize gains.

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