Indian exports to the United Kingdom are set to witness a substantial surge by 2027, driven by tariff reductions under the recently signed bilateral free trade agreement (FTA). Key sectors, particularly apparel, auto components, and chemicals, are expected to benefit significantly from the preferential trade terms.
According to trade projections, both woven and knitted apparel are positioned for strong growth. Woven apparel exports, currently valued at $753 million, enjoy a 9% tariff advantage under the FTA and are expected to more than double to $1.616 billion by 2027. Similarly, knitted apparel, which also benefits from a 9% tariff cut, is projected to grow from $654 million to $1.130 billion.
According to trade projections, both woven and knitted apparel are positioned for strong growth. Woven apparel exports, currently valued at $753 million, enjoy a 9% tariff advantage under the FTA and are expected to more than double to $1.616 billion by 2027. Similarly, knitted apparel, which also benefits from a 9% tariff cut, is projected to grow from $654 million to $1.130 billion.
These projections are based on each sector’s compounded annual growth rate (CAGR) over the past five years, with an additional 20% boost factored in to account for the anticipated impact of the FTA’s tariff concessions.
| Product | Exports from India ($ mn) | UK overall imports ($ mn) | Tariff Advantage (%) | Projection ($ mn) by 2027 |
| Apparel (Woven) | 753 | 8667 | 9 | 1616 |
| Apparel (Knitted) | 654 | 10991 | 9 | 1130 |
| Made-ups | 276 | 2613 | 8 | 477 |
| Auto-Components
& Vehicles |
286 | 88810 | 8 | 572 |
| Carpets | 102 | 1066 | 8 | 185 |
| Footwear | 279 | 5286 | 7 | 545 |
| Marine | 107 | 2995 | 5 | 185 |
| Aluminum & Products | 102 | 6215 | 5 | 200 |
| Organic Chemicals | 420 | 9052 | 4 | 966 |
(Edited by : Ajay Vaishnav)