For the automotive sector, the FTA is expected to significantly boost bilateral trade and investment flows.
24 Jul 2025 | 1325 Views | By Prerna Lidhoo
India and the United Kingdom on Thursday signed a landmark Free Trade Agreement (FTA) aimed at doubling bilateral trade and deepening economic ties between the two nations. The wide-ranging deal is expected to boost Indian exports of key sectors including automobiles, whisky, and medical devices.
For the automotive sector, ...
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India and the United Kingdom on Thursday signed a landmark Free Trade Agreement (FTA) aimed at doubling bilateral trade and deepening economic ties between the two nations. The wide-ranging deal is expected to boost Indian exports of key sectors including automobiles, whisky, and medical devices.
For the automotive sector, the FTA is expected to significantly boost bilateral trade and investment flows, particularly in sectors like electric mobility, tech, and clean energy, experts say.
Welcoming this FTA, Sudarshan Venu, Managing Director, TVS Motor Company said “...The signing of the India-UK Free Trade Agreement is a pivotal moment—it opens new frontiers for Indian companies to take ‘Make in India’ to the world. We are particularly excited given the launch of new Norton vehicles this year, which will benefit from the strengthening of trade links between India and the UK. It energises our global ambitions and strengthens our resolve to build world-class products and brands.”
To broaden the industry perspective, the auto component sector has echoed similar optimism about the India-UK trade pact. "The Automotive Component Manufacturers Association of India (ACMA) welcomes the signing of the India UK Comprehensive Trade Agreement as a landmark development in the bilateral relationship between the two nations. This agreement is poised to usher in a new era of economic cooperation, fostering greater market access, technology partnerships, and value chain integration between the Indian and British automotive industries," said Shradha Suri Marwah, President of ACMA.
Dr. Anish Shah, Group CEO & MD of Mahindra Group, called it a “transformative moment” in the global economic landscape, underscoring its potential to drive innovation, sustainability, and inclusive growth. "It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration," he said.
He said that Mahindra strongly believes in the power of cross-border partnerships to unlock economic potential, generate high-quality jobs, and drive progress in future-focused sectors such as green mobility, clean energy, digital technologies, and advanced manufacturing.
"The UK-India Vision 2035 aligns closely with our own strategic priorities building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. As Indian industry becomes increasingly global in its footprint and ambition, we look forward to contributing meaningfully to this next chapter of UK-India cooperation," he adds.
According to the UK government, the FTA will significantly reduce average tariffs on British goods entering India from 15% to 3% benefiting Indian consumers with improved access to British products. The UK currently imports £11 billion worth of goods from India annually. With tariffs now being liberalised under the new agreement, British consumers and businesses are expected to gain easier, more affordable access to Indian-made goods bolstering Indian exporters and enhancing their competitiveness in the UK market.