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India-UK Free Trade Agreement: What’s in It for Andhra Pradesh and Other States

26 Jul, 2025 17:31 IST

With India and the United Kingdom signing a landmark Free Trade Agreement (FTA), several Indian States are expected to witness substantial economic benefits. The Comprehensive Economic and Trade Agreement (CETA) aims to eliminate tariffs, ease market access, and unlock new export opportunities—especially in sectors such as textiles, engineering goods, marine products, and handicrafts.

State-Wise Benefits of the India-UK FTA

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Andhra Pradesh
The southern State is set to benefit significantly in the marine products and textile sectors. Shrimp and seafood exports from Visakhapatnam and Kakinada are expected to grow, while textile units in the Guntur region also stand to gain.

Maharashtra
Engineering goods, pharmaceuticals, and apparel are poised for increased exports, with key hubs like Pune, Mumbai, and Ichalkaranji driving growth.

Gujarat
The State is likely to see strong export growth in pharmaceuticals, chemicals, engineering goods, and marine products. The FTA could enhance pharma exports from Ahmedabad, chemical exports from Surat and Bharuch, engineering goods from Rajkot, and seafood from Veraval. Micro, Small and Medium Enterprises (MSMEs) are also expected to benefit from easier UK market access.

Tamil Nadu
Textiles, leather, and engineering goods are key sectors likely to see a major boost. Apparel units in Tiruppur, leather factories in Vellore, and auto-parts manufacturers in Chennai could experience enhanced competitiveness and export demand in the UK.

Karnataka
Bengaluru-based exporters of machinery and electronics, along with the State's pharma and engineering sectors, are poised for stronger trade ties with the UK.

Odisha
Seafood exports from Paradip and Balasore are expected to benefit from improved access, along with traditional handicrafts gaining entry into the UK market.

Punjab
Textile exporters in Ludhiana and auto parts manufacturers across the State are likely to benefit from the elimination of tariffs.

West Bengal
The FTA is expected to boost exports of leather goods from Kolkata, Darjeeling tea, and packaged food products.

Kerala
Increased demand is anticipated for shrimp, tuna, and black pepper from exporters in Kochi and Alappuzha.

Rajasthan
Jaipur’s jewellery, Jodhpur’s furniture, and traditional crafts may see significant growth in UK-bound exports.

Delhi
MSMEs in the Delhi NCR region, particularly in the textile and jewellery sectors, are expected to benefit from improved access to UK retailers.

Haryana
Auto component and textile exporters in Gurgaon and Faridabad are likely to see a surge in business with zero-duty entry into the UK market.

Uttar Pradesh
The FTA is projected to boost exports of Moradabad’s brassware, Kanpur’s leather products, and Noida’s apparel goods.