The report notes that India remains a relatively small supplier to the UK despite strong manufacturing capabilities. In 2025, the UK imported goods worth $928.9 billion globally, but only $15.2 billion, or 1.6%, came from India. Likewise, the UK accounted for just 3.4% of India’s $445 billion global merchandise exports.
High export potential
According to GTRI, the biggest opportunities lie in sectors where India has strong export capacity, the UK has sizeable import demand and CETA removes a meaningful tariff disadvantage.
Garments top the list. India supplied $1.3 billion, or 6.1%, of the UK’s garment imports in 2025. The UK already accounts for 8% of India’s global garment exports, providing an established customer base.
Textiles, leather and footwear also feature prominently, with India accounting for 7.8% of UK textile imports, 7.3% of leather products and 4.8% of footwear imports. The UK already buys over 10% of India’s global footwear exports.
Among food products, processed foods, including ready-to-eat meals, bakery products, sauces and ethnic foods, offer strong growth potential as tariff reductions coincide with India’s relatively low 1.1% share of the UK’s $33.4 billion processed food import market.
The report also highlights opportunities in cereals, vegetables, fruits, spices and seafood, although exporters will need to comply with stringent UK sanitary and phytosanitary (SPS) norms, traceability requirements and food safety standards.
Automobiles, motorcycles and auto components present a sizeable long-term opportunity. Despite the UK importing $92.2 billion worth of vehicles and components annually, India currently commands just a 0.4% market share, leaving significant room for expansion as tariffs fall.
Similarly, machinery, electronics and fabricated metal products could benefit from deeper supply-chain integration, although future growth will depend more on technology, certification and quality standards than tariff reductions alone.
Medium and low-potential sectors
GTRI categorises chemicals, pharmaceuticals, plastics, rubber products, precious metals, paper, wood products and transport equipment as medium-potential sectors, noting that regulatory compliance, sustainability requirements and procurement practices will play a bigger role than tariffs.
Meanwhile, iron and steel, ores and petroleum, alcoholic beverages and tobacco products are seen as having relatively limited upside, with structural barriers such as safeguard measures, carbon-related costs, weak brand presence and declining demand likely to outweigh the benefits of tariff reductions.
GTRI Founder Ajay Srivastava said the biggest gains are likely in sectors where India’s export strengths align with strong UK demand and meaningful tariff reductions under CETA.
“The biggest gains are likely where India’s strong export capacity, the UK’s substantial demand and the removal of a meaningful tariff disadvantage by the CETA come together,” he said, pointing to garments, textiles, leather, footwear, processed foods, seafood and selected agricultural products.
Srivastava added that automobiles represent a significant long-term opportunity given India’s minimal presence in the UK market, while machinery and electronics exports can expand if companies strengthen certification, technology and supply-chain integration.
He also called for a sector-specific export strategy, stressing that CETA creates market access, not guaranteed exports. “Without parallel work on standards, certification, logistics, regulatory approvals and buyer networks, much of the opportunity will remain on paper,” he said.
