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India-UK FTA opens up huge export potential for India in UK's $900bn market: Report
🇴🇲 Oman /Economy & Trade

India-UK FTA opens up huge export potential for India in UK's $900bn market: Report

From Times of Oman · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data New plan
  • India's exports to the UK have significant growth potential, with the UK market valued at $900 billion while India currently supplies only $14 billion.
  • The India-UK Comprehensive Economic and Trade Agreement (CETA), effective July 15, removes tariffs on nearly 99% of Indian exports, boosting competitiveness.
  • Key sectors like textiles, leather, marine products, rice, spices, and electronics are expected to see substantial increases in exports to the UK.

India stands to gain substantially from expanded export opportunities in the United Kingdom, a market valued at $900 billion. Currently, India's exports to the UK amount to approximately $14 billion, indicating a vast untapped potential, according to a Bank of Baroda Economics Research report.

UK represents a US$ 900bn market, out of which only about US$ 14bn is supplied by India. Hence, the export potential is huge.

— Bank of Baroda Economics Research reportHighlighting the significant untapped export potential for India in the UK market.

The recently implemented India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 15, is poised to significantly enhance the competitiveness of Indian products. The agreement eliminates tariffs on nearly 99% of India's exports to the UK, providing a major impetus for trade.

Bank of Baroda projects that India's exports to the UK could surge from the current USD 13.5 billion to USD 24.2 billion by fiscal year 2031, reflecting a compound annual growth rate of 12.5 percent. The CETA's duty-free access is particularly beneficial for labor-intensive sectors such as textiles and leather, which previously faced duties of up to 12% and 16%, respectively.

As per the terms of the agreement, around 99% of India's exports to the UK will now attract 0% tariff, providing a huge boost to exports.

— Bank of Baroda Economics Research reportExplaining the impact of the CETA on Indian exports.

Indian textile and apparel exports to the UK are forecasted to rise from USD 2.2 billion in FY26 to approximately USD 3.1 billion over the next five years. Similarly, leather exports are expected to increase to USD 900 million by 2030 from USD 411 million in FY26, potentially doubling India's market share in this category. Agricultural products, including marine exports, rice, and spices, are also anticipated to benefit from tariff-free access, with marine exports projected to nearly double by 2030-31. Electronics exports are also expected to see strong growth, potentially reaching US$4 billion by FY31.

By reducing/eliminating duties on almost 100% exports (by value), the CETA provides greater export competitiveness for Indian exporters.

— Bank of Baroda Economics Research reportDetailing the benefits of the CETA for Indian exporters.
DistantNews Editorial

Originally published by Times of Oman. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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