India-UK CETA removes tyre export duties, boosts Indian tyre industry prospects

Tyre exports to the UK reached ₹732 crore in FY25, growing 11% year-on-year. 

Automotive Tyre Manufacturers’ Association (ATMA) has welcomed the signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom, hailing it as a significant step forward in enhancing bilateral trade, particularly for the Indian tyre industry.

Under the India-UK CETA, all customs duties on tyres and rubber products exported from India to the UK have been eliminated with immediate effect. This move is expected to provide a major fillip to Indian tyre exports to the UK—a key European market—by enhancing price competitiveness and improving market access.

The removal of import duties on tyres by the UK under the CETA will significantly strengthen the competitiveness of Indian tyre manufacturers in the British market, said Arun Mammen, Chairman, ATMA. This will enable Indian tyre companies to build on the strong export momentum already seen over the past few years and further deepen our presence in developed markets.

Tyre exports to UK grew 11% in FY25

India exported tyres worth ₹732 crore to the UK in FY25, registering a year-on-year growth of 11 per cent from ₹660 crore in FY2023-24. This follows a 10 per cent growth in the previous fiscal, when exports stood at ₹602 crore in FY2022-23. With the elimination of duties, the industry anticipates that this upward trajectory will continue and accelerate in the years to come.

At the same time, the agreement offers a cushion for the domestic industry through a staggered tariff liberalisation schedule. Imports of major categories of tyres from the UK into India have been placed in the E10 staging category, meaning that import duties on these products will be gradually reduced over a ten-year period. This phased approach balances export opportunities with a calibrated opening of the Indian market.

Balanced deal boosts exports, protects domestic industry

The dual framework of immediate export gains and gradual tariff relaxation on imports is well-balanced and in the interest of long-term industry sustainability, he added.

The Indian tyre industry, which has already emerged as a significant exporter (exports over ₹25,000 crore in FY2024-25) with strong manufacturing capabilities and R&D investment, stands to gain significantly under the CETA framework.

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Published on July 29, 2025

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