India’s Tyre Makers Accelerate Exports With Duty-Free Access via India-UK FTA

India’s tyre industry has been at the center of landmark trade after the recent tariffs on tyre exports have been eliminated by the India-UK FTA agreement. This recent signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom will boost Indian tyre manufacturers’ access to the UK market.

This new deal comes into effect in July 2025 and will ensure the gradual import and free access liberalization to safeguard basic industry interests. Under this new FTA memorandum, Indian tyre manufacturers can now export their goods and services in the high-value global market.

What Does the Duty-Free Access Mean for Indian Tyre Exporters?

As per the reports, the Automotive Tyre Manufacturer Association (ATMA) has welcomed this decision and is delighted to collaborate with CETA for the development of the tyre industry. Before the agreement, 99% of Indian exports to the UK faced challenging tariffs in regions like the US and the European Union. Now, under this pact, no tariffs would be raised, and the market will be open for all Indian tyre brands to trade, opening new growth avenues for exporters.

Considering the figures, in the financial year 2024-25, Indian brands had exported tyres to the UK worth Rs 732 crore, along with trade tax and much more. Now in FY 2024-25, this was estimated to be around Rs 600 crore, an 11% increase from the previous year. This signifies that with the FTA tyres, businesses will get a boost in growth and sales in the upcoming years.

From the words of the Chairman, ATMA

While the proposal of the agreement came into effect immediately, the Chairman of ATMA, Arun Mammen, said that “the removal of import duties will significantly boost Indian tyre manufacturers’ global competitiveness. This agreement allows us to build on our export momentum and deepen our footprint in developed markets.”

ATMA emphasizes on CETA framework

Conclusion