India-UK Free Trade Agreement (FTA) to boost competitiveness of local tyre makers in British market: Automotive Tyre Manufacturers' Association (ATMA)

The India-United Kingdom (UK) Free Trade Agreement (FTA) is set to enhance the global competitiveness of Indian tyre manufacturers by removing import duties on tyre and rubber products exported to the UK. According to the Automotive Tyre Manufacturers' Association (ATMA), this immediate tariff elimination is expected to give Indian companies a significant price advantage, deepen their presence in the British market, and build on existing export momentum. In FY25, India exported tyres worth Rs. 732 crore (US$ 84.2 million) to the UK, registering 11% YoY growth. This follows a 10% increase from the previous year. With the elimination of duties, Indian tyre exporters are poised for an accelerated growth trajectory in one of Europe's key markets. The move comes at a time when Indian tyre companies are strengthening their Research and Development (R&D) capabilities and global market strategies.
Simultaneously, the FTA takes a calibrated approach towards inbound trade. Imports of key tyre categories from the UK to India have been placed in the E10 staging category, meaning tariffs on these items will be phased out over 10 years. This staggered liberalisation ensures that while Indian manufacturers benefit from immediate export gains, the domestic market is shielded from sudden import competition. ATMA described this dual-track framework as a well-balanced approach that promotes both growth and sustainability for India’s tyre sector. With total tyre exports crossing Rs. 25,000 crore (US$ 2.87 billion) in FY25, the agreement is likely to cement further India’s position as a major global player in tyre manufacturing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.