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Key Points

The India-UK Free Trade Agreement will significantly boost exports from key industrial states. Maharashtra’s pharmaceuticals, Gujarat’s marine products, and Tamil Nadu’s textiles stand to gain the most. Coastal states like Kerala and Andhra Pradesh will see increased seafood and spice exports. The deal also benefits northern states like Punjab and Uttar Pradesh in auto parts and leather goods.

Key Points: India-UK FTA to Boost Exports From Maharashtra Gujarat Tamil Nadu

  • Maharashtra’s Pune and Mumbai to gain in pharma and engineering exports
  • Gujarat’s Surat and Ahmedabad set for chemical and marine trade surge
  • Tamil Nadu’s Tiruppur textile hub to benefit from tariff cuts
  • Karnataka’s Bangalore electronics sector gains UK market access
2 min read

India-UK Free Trade Agreement to boost exports across key Indian states

Maharashtra, Gujarat, Tamil Nadu, Karnataka lead gains as India-UK trade deal eliminates tariffs on textiles, pharma, marine exports

"The FTA will boost key sectors like textiles, leather, and engineering goods - Government Statement"

New Delhi, July 25

The impending India-UK Free Trade Agreement (FTA), also referred to as the Comprehensive Economic and Trade Agreement (CETA), is poised to significantly boost exports from several Indian states by eliminating tariffs and enhancing market access in the United Kingdom.

According to a sector-wise state analysis, Maharashtra, Gujarat, Tamil Nadu, and Karnataka are expected to be among the biggest beneficiaries. Maharashtra's hubs: Pune, Mumbai, and Ichalkaranji- will see increased exports in engineering goods, pharmaceuticals, and apparel.

Gujarat's diverse industrial centres, including Ahmedabad, Surat, Rajkot, and Veraval, are anticipated to gain from stronger demand for pharmaceuticals, chemicals, engineering products, and marine exports.

Tamil Nadu stands to benefit substantially in textiles, leather, and auto parts, particularly in Tiruppur, Vellore, and Chennai. Karnataka's electronics, engineering, and pharmaceutical sectors, centred in Bangalore, are likely to gain from better access and price competitiveness in the UK market.

Coastal states such as Andhra Pradesh, Odisha, and Kerala are set to experience major gains in marine exports, especially shrimp and seafood from ports like Visakhapatnam, Paradip, and Kochi. Kerala is also expected to expand its spice exports, with products like black pepper seeing heightened UK demand.

Northern states, including Punjab, Haryana, Uttar Pradesh, and Delhi, will also benefit from the FTA. Punjab's Ludhiana-based textile and auto parts sectors, Haryana's Gurgaon and Faridabad-based exporters, and Uttar Pradesh's famed Moradabad brassware, Kanpur leather, and Noida apparel sectors are projected to see growth due to tariff-free entry into the UK. Delhi's MSMEs, particularly in jewellery and engineering, will also benefit from streamlined access to UK retailers.

In Rajasthan, traditional exports like Jaipur's gems and jewellery and Jodhpur's furniture and crafts are expected to see a resurgence. Similarly, West Bengal is poised to grow its exports of leather goods, processed foods, and Darjeeling tea.

The much-awaited landmark India-UK Free Trade Agreement was signed on Thursday, in the presence of Prime Ministers Narendra Modi and Keir Starmer, providing greater access to goods and services between the two countries.

The FTA is expected to boost key sectors such as textiles, leather, footwear, sports goods and toys, marine products, gems and jewellery, engineering goods, auto parts and engines, and organic chemicals.

- ANI

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Reader Comments

S
Sarah B
As someone working in Bangalore's tech sector, I'm cautiously optimistic. While electronics are mentioned, I wish there was more clarity on IT services which contribute significantly to our exports. The UK market has huge potential for our software companies too.
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Priya S
Darjeeling tea getting better access to UK markets is poetic justice! After all, the British took our tea plantations during colonial times. Now we're taking back the market on our own terms 😊 Hope the small tea growers benefit equally, not just big companies.
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Aman W
Good step but government must ensure quality standards are maintained. UK has strict regulations - if our exporters face rejections due to quality issues, it will hurt India's reputation. Need more awareness programs for small manufacturers.
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Kavya N
As a Surat-based diamond merchant, this is the best news in years! Our industry was hit hard by Russia-Ukraine war. UK market access with zero tariffs will help revive business. Hope the paperwork is simplified - currently too much red tape in exports.
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Michael C
While this focuses on goods, I hope services like Ayurveda and yoga get similar benefits. UK has shown growing interest in Indian wellness traditions. This could create many jobs in Kerala and other states promoting traditional medicine.
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Nisha Z

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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