India UK Trade Deal Cuts Duties Boosts Indian Exports

• Indian tyre exports to the UK now duty-free under CETA
• Exports rose 11% in FY25; growth expected to accelerate
• UK tyre imports to India face phased tariff cuts over 10 years

Indian tyre manufacturers are now expected to enjoy a competitive advantage in the UK market after the abolition of import duties as part of the recently signed India-UK Comprehensive Economic and Trade Agreement (CETA), said the Automotive Tyre Manufacturers' Association (ATMA).

With the elimination of customs duties on tyres and rubber products export from India to the UK, now Indian corporations will have better price competitiveness and improved access into the market, said ATMA in a statement recently.

Arun Mammen, Chairman of ATMA, said, "This will enable Indian tyre companies to build on the strong export momentum already seen over the past few years and further deepen our presence in developed markets".

Tyre exports to the UK grew by 11% to ₹732 crore ($88.4 million) in FY25 as compared to ₹660 crore in FY24. This was after a growth of 10% in FY23 to ₹602 crore. Given the latest developments, ATMA expects the trajectory to continue with the new duty-free regime.

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This is a positive trade agreement for Indian tyre makers that has immediate export benefits, as well as shielding domestic parameters. The imports of established categories of tyres into India from the UK fall under the 'E10 staging category', meaning the reductions in tariff levels will take place over a ten-year period, which presents a fairly aligned trade agenda.

Arun Mammen added, "This dual framework of immediate export gains and gradual tariff relaxation on imports is well-balanced and in the interest of long-term industry sustainability".

The Indian tyre industry exported just over ₹25,000 crore of products in FY25, underpinned by adequate manufacturing capacity, continued investment in research and development and the potential of meaningful involvement internationally. The UK is a primary market in Europe, and the trade agreement should meaningfully enhance Indian tyre exports and consolidate capacity in global tyre trade.