India-UK FTA: 13 states poised for export surge across textiles, pharma, auto components, marine products

The India-UK Free Trade Agreement (FTA) is set to immensely boost exports across key states as India secures unprecedented duty-free access for 99% of its exports to the UK, covering nearly the entire trade basket. This is expected to open new opportunities for labour-intensive industries such as textiles, marine products, leather, footwear, sports goods, toys, and gems and jewellery, alongside fast-growing sectors like engineering goods, auto components, and organic chemicals. Following the signing of the India-UK FTA, these states are set to benefit due to expected export growth on tariff eliminations and improved market access in the UK.

1. Maharashtra could see higher exports of auto components, generic medicines, and garments, especially from industrial hubs like Pune, Mumbai, and Ichalkaranji, thus benefiting sectors like engineering goods, pharmaceuticals, and apparel.

2. Gujarat will gain from increased exports of pharmaceuticals (notably from Ahmedabad), chemicals (from Surat and Bharuch), engineering goods (from Rajkot), and marine products like seafood from Veraval.

3. Tamil Nadu will benefit from gains in textiles, leather, and engineering goods, with apparel units in Tiruppur, leather industries in Vellore, and auto part manufacturers in Chennai expected to see price competitiveness in the UK.

4. Karnataka, a hub for engineering goods, electronics, and pharma, will benefit from the enhanced exports of machinery and electronic goods from Bengaluru. Pharma units will see expanded exports.

5. Andhra Pradesh, a key state for marine products and textiles, could see higher exports of shrimp and seafood from Visakhapatnam and Kakinada, along with textile exports from the Guntur region.

6. Odisha, too, is a key state when it comes to marine products and handicrafts. The historic FTA will allow improved market access for seafood from Paradip and Balasore. There is also potential for traditional crafts in the UK markets.

7. Punjab will benefit from the elimination of UK duties on textiles and engineering goods. Exporters in Ludhiana and auto part manufacturers could see a boost in demand.

8. West Bengal, a key state for leather goods, food, and tea, is projected to see export growth, with gains expected for Kolkata-based leather exporters, Darjeeling tea producers, and packaged food manufacturers.

9. Kerala also ships marine products and spices, which will benefit as the FTA could see higher UK demand for shrimp, tuna and black pepper; exporters in Kochi and Alappuzha are also expected to gain.

10. Rajasthan will see export expansion in handicrafts, gems, and jewellery. Jaipur's jewellery and Jodhpur's wooden furniture and crafts are likely to gain from reduced UK tariffs.

11. Delhi's apparel, engineering, and jewellery businesses will benefit from improved access for MSMEs in UK retail markets.

12. Haryana is expected to gain from the zero-duty entry of auto components and textile goods, with exporters in Gurgaon and Faridabad set to benefit the most.

13. Uttar Pradesh, a key state for handicrafts, leather, apparel exports, could see gains for traditional products like Moradabad’s brassware, Kanpur’s leather goods, and Noida’s apparel exporters.