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Engineering Export Promotion Council of India (EEPC) India has welcomed the signing of the India-UK Free Trade Agreement (FTA) as a landmark achievement that will significantly boost India's engineering exports and deepen bilateral economic ties.
The United Kingdom, India's sixth largest engineering export destination, recorded a strong 11.7 per cent growth in trade during 2024-25. The EEPC India added in its statement that despite this momentum, India's exports to the UK stand at just USD 4.28 billion--less than 2.2 per cent of the UK's total engineering imports of USD 193.52 billion--highlighting vast untapped potential. The FTA's elimination of tariffs, which previously reached up to 18 per cent on key engineering products, is expected to catalyse export growth, EEPC India's said in an official statement. EEPC India estimates that engineering exports to the UK could nearly double to over USD 7.5 billion by 2029-30. The statement added that high-growth segments such as electric machinery, auto components, industrial equipment, and construction machinery are projected to expand at a CAGR of 12-20 per cent, driven by improved market access and streamlined trade procedures. "The agreement will particularly benefit Indian MSMEs by reducing entry barriers and enhancing competitiveness in the UK market," EEPC said, adding that this strategic partnership also aligns with India's goal of achieving USD 250 billion in engineering exports by 2030, positioning the UK as a key ally in this journey. Pankaj Chadha, Chairman of EEPC India, said, "The India-UK FTA is a timely and strategic breakthrough that will energise our engineering sector. It opens new opportunities for exporters, especially MSMEs, and strengthens our position in global value chains. We commend both governments for their vision and commitment." Adhip Mitra, Executive Director of EEPC India, added, "This agreement is not just about trade--it's about transformation. It will drive innovation, foster technology partnerships, and support our long-term goal of sustainable and inclusive growth in engineering exports." "EEPC India is confident that this agreement will open exciting new opportunities for Indian engineering exporters and help strengthen our position in the global market," the statement added. EEPC India further stated that at a time when global trade policy uncertainty persists, the signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK is a landmark development. Apart from eliminating tariffs and trade barriers, the trade pact paves the way for a new wave of collaboration by manufacturers from the two sides for technology and innovation, the statement added. EEPC India said that given that it is one of the most comprehensive trade pacts with a major developed country, the India-UK FTA could be used as a template for other trading partners and blocs. (ANI)
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