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Overview
India is rapidly expanding its advanced manufacturing capabilities, driven by major investment, strong industrial growth and ambitious government targets to modernise key sectors. Demand is growing for high‑quality machinery, components, automation systems and engineering solutions – areas where UK manufacturers are globally recognised.
The UK-India Free Trade Agreement (FTA), also known as the UK-India Comprehensive Economic and Trade Agreement (CETA), is now in force and supports UK manufacturers by reducing tariff and administrative barriers – improving certainty for business travel and strengthening access to India’s industrial supply chains. This makes it easier for UK businesses to supply specialised machinery, industrial technologies and advanced engineering services.
As of 2026:
- India is one of the fastest growing manufacturing economies, supported by national programmes such as ‘Make in India’, Production‑Linked Incentive (PLI) schemes and major infrastructure expansion.
- India ranks as the world’s sixth‑largest manufacturing economy and is projected to increase the sector’s share of GDP from around 12% to 23% by 2047. Driven by flagship initiatives such as ‘Make in India’ and the PLI schemes, India is positioning itself as one of the world’s leading manufacturing powerhouses – rapidly scaling production capacity, upgrading technology and integrating more deeply into global supply chains.
- High‑growth segments include precision engineering, advanced industrial automation and robotics, materials handling equipment, packaging machinery, and advanced machine tools, Industry 4.0 and digital manufacturing technologies, advanced materials and processing technologies, sustainable and low‑carbon manufacturing solutions
- India is seeking international expertise and high‑quality imported equipment to support expansion in aerospace, automotive, pharmaceuticals, food processing and green manufacturing.
For UK exporters, this means strong demand for reliable machinery, advanced components, sustainable manufacturing technologies and engineering services.
Trade agreement with India
The FTA entered into force on 15 July 2026. It strengthens the trading relationship between the two countries and provides a clearer, more predictable framework for UK companies exporting to India.
Under the agreement:
- tariffs are reduced or removed on many technology products
- digital trade becomes simpler and more secure
- electronic transactions are recognised in law
- temporary movement of businesspersons is easier and more transparent
- intellectual property protections are strengthened
Sector and market opportunities
There are significant opportunities for UK advanced manufacturing exporters in industrial machinery, automation, robotics, materials technologies and high‑specification engineering systems, as India accelerates modernisation across its industrial base.
Examples of key opportunities
Specialised and capital machinery
- processing and packaging machinery for food and beverages
- pharmaceutical and biotech production equipment
- metals, plastics and composites forming machinery
- CNC (computer-controlled) machines, milling, tooling and precision engineering systems
- industrial automation, robotics and smart factory systems, factory automation and control systems
- industrial robots, cobots, sensors and machine vision
- sensors, vision systems and smart factory technology
- predictive maintenance and production‑line optimisation tools
Aerospace and defence manufacturing
- advanced materials, components and machining
- maintenance, repair and overhaul technologies
- digital manufacturing and systems integration
- testing and certification equipment
- sustainable and low-carbon manufacturing technologies, energy‑efficient machinery
- resource‑efficiency technologies
- clean‑process engineering
- industrial emissions‑monitoring systems
Advanced materials
- composites, lightweight materials and high‑performance polymers
- specialty alloys, ceramics and advanced coating technologies
Optical lenses and precision optics
Optical lenses and components used in machine vision, inspection systems, lasers, microscopy, medical devices, electronics manufacturing and advanced imaging applications.
Precision instruments and industrial Instrumentation
High‑accuracy sensors, analytical instruments, metrology systems and control instrumentation.
Test and measurement equipment
Spectrum and network analysers, calibration systems and data‑acquisition equipment.
Tariff‑free advanced manufacturing products
Tariff benefits
UK exporters gain significant tariff reductions, making UK machinery, automotives, aircraft parts, and other products, more competitive in the Indian market.
The deal aligns with the UK’s Industrial Strategy, supporting the UK’s high-growth sectors like advanced manufacturing. Tariffs have been cut for the UK’s large and varied manufacturing sectors from aerospace (as high as 11% reduced to zero), automotives (more than 100% down to 10% under a quota) and most electrical machinery (up to 22% down to zero or a 50% reduction).
UK benefits from tariff liberalisation in India
- 64% of tariff lines will be tariff-free from day one of the FTA. This will include UK exports of advanced manufacturing such as aircraft parts and most scientific and technical measuring instruments.
- 21% of lines will be tariff free after a few years through gradual reduction, including products like turbojet engines, and a wide range of machinery and electrical products.
For the advanced manufacturing sector, this means better market access, more competitive pricing for industrial equipment, and improved confidence in supplying and servicing machinery in India.
Many UK advanced manufacturing goods now enter India at reduced or zero tariffs under the FTA, depending on their harmonised system (HS) code classification and rules of origin:
- A significant number of industrial machinery, engineering components and automation technologies benefit from tariff elimination once origin requirements are met.
- Where products are on a tariff‑reduction schedule, rates decrease over a defined phase‑out period.
- Exporters must ensure their goods meet rules of origin criteria to claim preferential rates.
- Businesses should confirm the correct HS code for their product to identify the specific preferential tariff that applies.
Find out more in our guide: Tariffs and customs for imports from and exports to India.
Rules of origin
To benefit from reduced or zero tariffs under the FTA, UK exporters must ensure their goods meet the agreement’s rules of origin. These rules determine whether a product is considered to originate in the UK and therefore qualifies for preferential treatment.
There are 3 main ways a good can qualify as originating under the agreement – it is:
- wholly obtained or produced in the UK or India
- made entirely from originating materials sourced from the UK or India
- produced using non-originating materials but meets specific product-level rules known as product-specific rules (PSRs)
Register with HM Revenue and Customs
Under the FTA a claim for preferential tariff treatment can be made by the importer on the basis of an origin declaration completed by a UK producer or exporter. To do so, a UK producer or exporter must be registered with HMRC prior to completing origin declarations.
Register to complete origin declarations under the UK-India Free Trade Agreement on GOV.UK.
If you have not registered with HMRC your origin declarations will be rejected and your importer will not be able to claim preference.
Registered UK exporters or producers must also provide a self-certificated origin declaration to Indian customs and the Indian importer before a claim for preference is made by the importer.
For detailed guidance, refer to the rules of origin guide which explains the criteria and provides sector-specific examples.
Opportunities for digital trading
Electronic contracts
The agreement ensures that electronic contracts are legally valid and cannot be considered invalid just because they are in electronic form.
However, India might impose specific criteria regarding electronic contracts, including some circumstances where they are not accepted. You should check local regulations for more information.
Electronic authentication and trust services
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions (and the people behind them) are genuine. The agreement ensures that electronic authentication and trust services, such as electronic signatures and time stamps are considered legally valid. Strengthening the legal validity of electronic trust services provides greater confidence that transactions can be concluded through electronic means.
However, India might impose specific criteria regarding electronic trust services and authentication, including some circumstances where they are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements. The agreement also encourages mutual recognition of trust services, which supports smoother cross-border digital interactions in the future.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and India have committed to accept trade documents in electronic form, where possible, and to treat them as legally equivalent to paper versions. There may be some exceptions, and you should check local regulations for more information.
The UK and India have also committed, where possible, to making trade administration documents available in electronic form.
Safer trading online for your business
Online consumer protection
The agreement recognises the importance of strong and transparent consumer protection measures to guard against misleading, deceptive, fraudulent or unfair practices in digital trade.
Under the agreement, the UK and India have committed to maintaining effective consumer protection laws for online transactions, including rules that prohibit harmful commercial practices.
Protected source code
The UK and India have agreed that businesses are not required to give access to – or transfer – source code (including algorithms embedded in it), except in specific legal and regulatory circumstances.
Easier business travel
For UK exporters and service providers, the benefits of the agreement go beyond tariff reductions. The agreement creates a predictable and transparent framework for business mobility, which is critical for sectors where face-to-face engagement matters. For example:
- Manufacturers and exporters can attend trade fairs, meet distributors, and negotiate contracts without worrying about visa delays.
- Professional service providers such as advanced manufacturing managers, engineers and IT specialists can deliver projects onsite, ensuring quality and compliance.
- Manufacturing consultancies can provide advisory services under clear rules, strengthening trust with Indian clients.
By reducing administrative barriers and clarifying eligibility, the agreement helps UK businesses compete effectively in India’s dynamic market.
Under the FTA, both governments have committed to facilitating the temporary movement of business persons. This means UK professionals can expect:
- faster and more predictable visa processing
- clear definitions of permitted activities
- longer stays for certain categories of business travellers
- legal certainty and transparency
These changes give UK companies confidence to plan visits, deploy staff, and deliver projects without unnecessary disruption.
Find out more in our guide: Travelling to India for work.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access webinars on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate.
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures.
Check import duties and allows you to check the status of available tariff rate quotas.
Useful resources
Prior to export, you must be aware of local regulations and import conditions in India that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer, or distributor, you can use the following contacts:
To see a range of official Indian government portals on procurement opportunities, policy insights and market access, see our guide: Government procurement opportunities in India.
Legal disclaimer
This document is provided as an information guide only and should not be relied on as a substitute for your own research or independent advice.
No investment and/or business decision should be made solely on the basis of information presented in this document. It is recommended that an independent due diligence investigation is conducted before entering into engagement with any individual, business or other organisation mentioned.
The Department for Business and Trade accepts no responsibility for any loss or damage caused to any person as result of any error, omission, inaccurate or misleading statement in this document.
The accuracy, completeness or timeliness of the content of any website mentioned in this document is not guaranteed in any way, implied or explicit.
