India’s precision manufacturing industry is on the verge of a major breakthrough. With a fresh trade pact in place, exports to the United Kingdom are projected to climb to $7.5 billion by 2029-30, almost twice today’s levels in just five years. The new Free Trade Agreement, described as the UK’s most significant deal since leaving the EU, is expected to be the key driver behind this surge.
Currently, the UK stands as India’s sixth-largest market for engineering goods, recording a healthy 11.7% growth in 2024-25. The new pact is set to accelerate this trajectory, with electrical machinery, auto components, construction equipment, and industrial machinery projected to grow at a CAGR of 12-20%.
Wider Market Access for Indian Manufacturers
With this deal, manufacturers in India are set to reap several advantages. The agreement opens new doors for Indian manufacturers.
- Non-ferrous metals will now enter the UK market free from duties
- The tariff-free access for industrial and electrical machinery gives India a stronger footing in advanced manufacturing and global supply chains
- Automakers are set to benefit, with duty-free access for conventional vehicles
- EVs and hybrid exports have concessional quotas, as per the FTA
Strengthening India’s Global Position with Precision Manufacturing Products
Healthcare and aerospace have been given a strong boost, too.
- Zero tariffs on medical devices, aerospace, and defense products
- Reduced tariffs on renewable energy machinery, aiding India’s green export push
- Lower duties on British imports, cutting costs for cars, whisky, and industrial goods for Indian buyers
For consumers in India, the FTA brings its own rewards. On average, tariffs imposed on British imports will drop to 3% from 15%. Premium products, therefore, are set to be more affordable.
The overall trade ties look promising, as bilateral trade will stand at around $120 billion by 2030. The engineering and precision manufacturing sectors remain at the core of this growth trajectory.
Indian engineering products are regaining global traction, supported by an increasingly robust supply chain infrastructure.
Attribution:
Source: This article is adapted from original reporting by the New Indian Express, published on July 24, 2025.
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