ujarat’s export-driven industries are hoping to see a major rise in business after India’s new free trade agreements with the United Kingdom and Oman opened wider access to these markets. The agreements are expected to benefit sectors such as engineering, ceramics, jewellery, pharmaceuticals and other key industries from the state.
The new trade arrangements have removed or reduced import duties on a large number of Indian products, making them more competitive in overseas markets. However, exporters in Gujarat continue to face challenges from rising freight costs and supply chain disruptions linked to the ongoing conflict in the Middle East.
UK and Oman Open Wider Markets for Indian Goods
The India-UK Free Trade Agreement (FTA), officially called the Comprehensive Economic and Trade Agreement (CETA), came into effect on July 15. Under the agreement, the UK has removed tariffs on 99% of Indian exports.
India’s trade relationship with Oman has also received a boost through the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which became operational on June 1. The agreement provides duty-free access to 99.38% of India’s exports to Oman.
For Gujarat’s exporters, these agreements are expected to create new opportunities by lowering the cost of Indian goods in international markets.
Gujarat Contributes Nearly 13% of India’s UK Exports
According to FY 2025-26 figures, India’s exports to the UK were worth around ₹1.18 lakh crore. Gujarat accounted for nearly 13% of this total, with exports valued at ₹15,922 crore.
This made Gujarat the second-largest exporting state to the UK, behind Maharashtra, whose exports to Britain stood at ₹20,361 crore.
Tamil Nadu ranked third with exports worth ₹14,268 crore, followed by Karnataka at ₹13,262 crore and Uttar Pradesh at ₹11,280 crore.
Within Gujarat, Ahmedabad led exports to the UK at ₹3,485 crore, followed by Jamnagar at ₹1,484 crore, Vadodara at ₹1,438 crore, Valsad at ₹1,407 crore and Bharuch at ₹1,198 crore.
Engineering, Ceramics and Pharmaceuticals Expected to Gain
Gujarat has a strong presence in several industries that are expected to benefit from the new trade agreements. These include engineering goods, ceramic products, jewellery made from gold and precious metals, petroleum products, motor vehicles and pharmaceutical formulations.
Among the major commodities exported to the UK during 2025-26, petroleum products accounted for ₹2,229 crore, followed by motor vehicles and cars at ₹1,511 crore. Drug formulations contributed ₹1,327 crore, while ceramics and allied products were valued at ₹880 crore.
Engineering goods accounted for ₹56 crore, while gold and precious metals stood at ₹53 crore in the data shown.
Exporters believe the removal of duties will help Indian products compete more effectively with goods from other countries. The savings from lower duties could also help businesses manage the sharp rise in transportation and logistics expenses.
Rajkot Exporter Sees Early Impact of Oman Deal
The benefits of the Oman agreement are already being felt by some exporters.
Parth Ganatra, a Rajkot-based exporter of submersible pumps and agricultural equipment, said the Oman CEPA had started bringing new business opportunities.
He said he received an order for two containers soon after the agreement came into effect. He also described the UK trade agreement as a potential game changer for Gujarat’s engineering industry.
The development is particularly important for engineering exporters, who are looking for better access to overseas markets at a time when higher freight costs are putting pressure on businesses.
Morbi Ceramic Industry Expects Bigger UK Presence
Morbi’s ceramic industry is another major beneficiary expected from the India-UK trade agreement. The region exports ceramic products worth nearly ₹800 crore every year to the UK.
Ceramic exporters face strong competition in the British market from producers in countries such as Spain and Italy. The removal of tariffs is therefore expected to give Indian manufacturers a better chance to compete on price and expand their market share.
Nilesh Jetpariya, a leading ceramic exporter from Morbi, said the agreement would improve the competitiveness of Indian ceramic products and help local exporters increase their presence in the UK.
Freight Costs Still a Major Concern
While the new trade agreements have created optimism among exporters, businesses are still dealing with higher logistics costs and supply chain problems.
The disruption caused by the conflict in the Middle East has affected shipping routes and increased freight expenses. Exporters are therefore hoping that the savings from duty-free access will help balance some of these additional costs.
With Gujarat already contributing a significant share of India’s exports to the UK and having a strong industrial base, exporters believe the new agreements with the UK and Oman could open the door to greater international business. Engineering firms, ceramic manufacturers, pharmaceutical companies and jewellery exporters are now looking to use the improved market access to expand their overseas presence.
Also Read: Gujarat Or Tamil Nadu: Which Is India’s Model State? https://www.vibesofindia.com/gujarat-or-tamil-nadu-which-is-indias-model-state/
