UK Trade Deal Landmark Step in Strengthening India's Trade: SIAM

The Society of Indian Automobile Manufacturers (SIAM) has hailed the India–UK Comprehensive Economic and Trade Agreement (CETA) as a landmark step in India’s global economic strategy, particularly in engaging with developed markets. 

Commenting on the deal, SIAM President Shailesh Chandra congratulated the government of India for its “tireless efforts” in bringing the agreement to fruition and praised the extensive stakeholder consultations that shaped the final outcome.
The trade deal reduces the base rate of customs duty on a certain number of UK-manufactured ICE cars progressively to 10% over five years, while the duty on electric cars priced over £40,000 (approximately Rs 44 lakh) will be reduced to 10% over 10 years. 

This represents a significant cut in the current import tariff of 70-110% for these vehicles. These duty cuts, subject to defined quotas and eligibility norms, are expected to make premium cars substantially more accessible to Indian consumers.

However, the agreement has explicitly excluded battery, hybrid and hydrogen-powered passenger cars priced under £40,000 (approximately Rs 44 lakh) from any import duty concessions, a move aimed at shielding the domestic manufacturers.
In a reciprocal move, the UK is also set to open its EV market for automakers exporting vehicles from India by removing tariffs on EV exports to the UK from the sixth year of the trade agreement. This opens up a major new market opportunity for India's burgeoning EV industry.

“This landmark development marks a significant step forward in strengthening India’s global economic engagement,” Chandra said, adding that the commitments on automobile tariffs “strike a thoughtful balance—addressing consumer interests while supporting the broader goals of Indian industry.”

Chandra noted that SIAM views the agreement as part of a broader strategic engagement, fostering deeper collaboration between India and the UK. “It reflects India’s growing leadership in shaping modern trade and investment frameworks,” he said.

SIAM reaffirmed its commitment to working with the government to ensure the FTA delivers tangible gains in growth, competitiveness, and innovation for the Indian automotive sector.