Indian Auto Component Industry Poised for Export Boom as India-UK FTA Slashes Import Tariffs: Sunit Bharti Mittal

The recently signed India-UK Free Trade Agreement (FTA) is set to propel Indian auto component manufacturers into a new era of growth, as import duties on British vehicles are reduced drastically over the next decade, according to Bharti Enterprises Chairman Sunil Bharti Mittal.

Major Duty Reduction

Under the FTA, import tariffs on cars built in the UK (across electric, gasoline, and diesel varieties) will decrease from over 100% to just 10%, subject to an annual quota and gradual implementation over the next 10-15 years.
 

Boost for Indian Manufacturers

Sunil Mittal emphasized that these tariff reforms will make India increasingly attractive for UK auto component makers, who may shift production to India, drawn by the lower costs and a burgeoning local market.

UK car companies are expected to ramp up imports of Indian components and even establish local factories to capitalize on India’s competitive labor and manufacturing strengths.

No Threat to 'Make in India'

Mittal dismissed fears that cheaper UK imports might threaten domestic industry, instead affirming India’s global leadership in sophisticated auto parts manufacturing and export. Many UK-based companies already export Indian-made auto components to over 100 countries, reinforcing India’s position as a global hub for automotive manufacturing.

The Automotive Component Manufacturers Association of India (ACMA) welcomed the FTA, highlighting that Indian MSMEs will gain new export opportunities, especially in electric mobility, precision engineering, and advanced materials.

Industry Reactions
Mittal called the Indian auto parts industry “one of the most sophisticated and advanced in the world,” adding that concerns about foreign-made high-cost components flooding the market are unwarranted. “With this agreement, UK car manufacturers will import more components from India, and probably set up new factories here to access high-quality, low-cost products for their global markets,” he stated.

Safeguards for Local Industry
The duty reductions will be phased in to protect India’s domestic industry, ensuring local auto manufacturers and their suppliers have room to scale up and compete globally over the transition period.

The India-UK FTA marks a pivotal shift for Indian auto components, offering lucrative growth avenues for manufacturers, exporters, and MSMEs keen to expand their footprint in the international automotive supply chain.

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