The recently signed India-UK Free Trade Agreement (FTA) will significantly benefit Indian auto component manufacturers, according to Bharti Enterprises Chairman Sunil Bharti Mittal. He said the reduction in import duties on UK-built vehicles will lead to greater sourcing of auto parts from India and possibly attract UK firms to set up manufacturing facilities in the country.
In an exclusive interview with ANI, Mittal stated that the deal will not threaten India’s domestic manufacturing base but rather enhance it.
“The Indian auto parts manufacturing industry is among the most sophisticated in the world. We already have a strong position as global exporters. UK companies are more likely to import components from India and even establish factories here to benefit from our lower costs and skilled workforce,” he said.
Under the FTA, the steep import duties—previously over 100%—on UK-made cars (both electric and traditional fuel-based) will be reduced to about 10%, but only within a fixed annual quota. This tariff reduction will be phased in over 10 to 15 years, allowing time for India’s domestic auto sector to scale up further.
Mittal dismissed concerns that the agreement might undermine the ‘Make in India’ initiative. “Quite the contrary,” he said, “UK carmakers will likely shift production of high-value components to India to remain globally competitive.”
He further noted that several UK firms are already exporting Indian-made components to over 100 countries. “India offers talent and cost advantages that the UK simply cannot match. Their local market is small, and manufacturing there is expensive,” he said.
The Automotive Component Manufacturers Association of India (ACMA) has welcomed the FTA, stating that it will improve export prospects, simplify regulations, and provide a boost to Indian MSMEs engaged in precision engineering, electric mobility, and lightweight materials.
With enhanced trade terms and long-term safeguards for domestic industry, the FTA is seen as a strategic win for India’s globally competitive auto component sector.
