Kolkata, Jul 24 (PTI) The signing of the India-UK Free Trade Agreement (FTA) marks a breakthrough for Indian engineering exports and is poised to significantly deepen bilateral economic ties, the engineering exporters' body EEPC India said on Thursday.

Terming it as a “landmark achievement,” EEPC India noted that the FTA’s removal of tariffs—previously as high as 18 per cent on key engineering items—will unlock substantial opportunities for Indian manufacturers, particularly in high-growth sectors such as electrical machinery, auto components, industrial equipment, and construction machinery.

India’s engineering exports to the UK, its sixth-largest destination, stood at USD 4.28 billion in FY25, accounting for just 2.2 per cent of the UK’s total engineering imports.

The trade pact is expected to nearly double this figure to over USD 7.5 billion by 2029–30, the apex body said in a statement.

“This 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,” said EEPC India Chairman Pankaj Chadha.

The organisation believes this comprehensive trade pact with a major developed economy could serve as a template for future FTAs with other trading blocs and nations, supporting India’s broader goal of reaching USD 250 billion in engineering exports by 2030.

Meanwhile, aided by higher shipments of iron and steel, internal combustion engines, and two- and three-wheelers, India’s engineering goods exports returned to growth in June 2025, rising 1.35 per cent year-on-year to USD 9.5 billion.

Cumulative exports in April-June (Q1 FY26) stood at USD 28.91 billion, up from USD 27.89 billion in the same period last year. PTI BSM NN

Tariff removal under India-UK FTA expected to boost engineering exports and expand MSME market access. The India-UK Free Trade Agreement implements comprehensive tariff removal on key engineering items, creating preferential market access for Indian manufacturers in sectors such as electrical machinery, auto components, industrial equipment, and construction machinery. The concessions are expected to expand shipments, improve competitiveness in the UK, open opportunities for MSMEs, and serve as a template for future trade negotiations to boost engineering export targets and integration into global value chains.