India UK FTA To Boost Automotive Industry With Greater Market Access, Tech Exchange Auto industry leaders believe the agreement will mark the beginning of deeper economic cooperation between the Indian and British automotive industries, enabling greater market access, technology exchange and value addition

India and the United Kingdom (UK) signed a Free Trade Agreement (FTA) today, the FTA is a key part of Prime Minister Narendra Modi's UK visit with British PM Keir Starmer. With the agreement, the bilateral trade between the two countries stands at nearly USD 56 billion, with a joint goal to double this figure by 2030. This FTA will lower tariffs on 99 per cent Indian exports to the UK while making it easier for British firms to export whisky, cars and other products to India; this move has been welcomed by the auto industry leaders.

"At Mahindra, we believe deeply in the power of such cross-border partnerships to unlock economic potential, create high-quality jobs, and accelerate progress in future-facing sectors from green mobility and clean energy to digital technologies and advanced manufacturing. The UK-India Vision 2035 aligns closely with our own strategic priorities building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. We look forward to contributing meaningfully to this next chapter of UK-India cooperation," said Dr. Anish Shah, group CEO and MD, Mahindra Group.

A spokesperson for JLR, said, "We welcome this free trade agreement between the UK and India, which over time will deliver reduced tariff access to the Indian car market for JLR's luxury vehicles. India is an important market for our British built products and represents significant future growth opportunities. No decisions have been taken on pricing."

The agreement will boost ease of doing business, reduce cost of doing business and enhance confidence of doing business.

The FTA is poised to open new global frontiers for Indian manufacturing and design, especially under the Make in India initiative. For TVS Motor company, the agreement comes at a pivotal time as it prepares to launch a new line of Norton Motorcycles in the UK. TVS Motor acquired Britain's luxury motorbike maker Norton Motorcycles for INR153 crore in 2020.

Sudarshan Venu, MD, TVS Motor Company said "The signing of the India-UK Free Trade Agreement is a pivotal moment—it opens new frontiers for Indian companies to take 'Make in India' to the world. We are particularly excited given the launch of new Norton vehicles this year, which will benefit from the strengthening of trade links between India and the UK. It energises our global ambitions and strengthens our resolve to build world-class products and brands."

TVS Motor believes the India-UK FTA will create immense opportunities for Indian companies to expand their global footprint while showcasing the country's innovation and engineering excellence on a larger platform.

The Automotive Component Manufacturers Association of India (ACMA) has appreciated the move for strengthening bilateral ties and unlocking new opportunities for the automotive sector. Shradha Suri Marwah, president, ACMA said that the agreement will mark the beginning of deeper economic cooperation between the Indian and British automotive industries, enabling greater market access, technology exchange, and value addition.

Both countries have maintained a steady and growing trade partnership in recent years. In FY 2024–25, bilateral trade between India and the UK reached US$23.16 billion, increasing from US$21.40 billion in FY 2023–24, according to data from the Ministry of Commerce and Industry, GoI. As per UK's long-term projections, this agreement could increase its exports to India by nearly 60 percent, adding £15.7 billion (US$21.3 billion) by 2040.