Gujarat Exporters Expect Trade Gains from UK and Oman Agreements
State Contributes 13% of India’s Exports to the UK as Duty-Free Access Opens New Opportunities
Export-oriented industries in Gujarat are preparing for potential business opportunities following the implementation of India's trade agreements with the United Kingdom and Oman. Industry representatives expect duty-free market access to strengthen exports of engineering goods, ceramics, jewellery and pharmaceuticals despite continuing logistics and freight challenges.
Gujarat's export-oriented industries are looking to benefit from India's recently implemented free trade agreements with the United Kingdom and Oman, with exporters expecting improved market access and enhanced competitiveness for key product categories.
The India-UK Free Trade Agreement (FTA), officially known as the Comprehensive Economic and Trade Agreement (CETA), came into effect on July 15, eliminating tariffs on 99% of Indian exports.
Earlier, the India-Oman Comprehensive Economic Partnership Agreement (CEPA) became operational on June 1, providing duty-free access to 99.38% of India's exports.
According to official figures for FY 2025-26, India's exports to the UK stood at around Rs 1.18 lakh crore, with Gujarat contributing nearly 13% of the total. The state's exports to the UK were valued at Rs 15,922 crore, making Gujarat the country's second-largest exporter to Britain after Maharashtra.
Gujarat's major exports to the UK and Gulf markets include engineering goods, ceramic tiles, gold and precious metal jewellery, petroleum products, motor vehicles and pharmaceutical formulations.
Exporters believe the duty savings under the new trade agreements will improve competitiveness and help offset the higher logistics costs experienced over recent months.
Parth Ganatra, a Rajkot-based exporter of submersible pumps and agricultural equipment, said: "I received an order for two containers soon after the Oman agreement came into effect. The UK FTA will be a game changer for the engineering sector."
The agreement is also expected to support Morbi's ceramic industry, which exports products worth nearly Rs 800 crore annually to the UK.
Nilesh Jetpariya, a leading ceramic exporter from Morbi, said: "Our biggest competitors in the UK market are Spain and Italy. The FTA will improve our competitiveness and help us expand our presence there."
Top Commodities Exported to the UK (2025-26)
- Petroleum products – Rs 2,229 crore
- Motor vehicles/cars – Rs 1,511 crore
- Drug formulations – Rs 1,327 crore
- Ceramics & allied products – Rs 880 crore
- Engineering goods – Rs 56 crore
- Gold/precious metals – Rs 53 crore
Leading Gujarat Exporting Districts to the UK
- Ahmedabad – Rs 3,485 crore
- Jamnagar – Rs 1,484 crore
- Vadodara – Rs 1,438 crore
- Valsad – Rs 1,407 crore
- Bharuch – Rs 1,198 crore
Top Five States Exporting to the UK
- Maharashtra – Rs 20,361 crore
- Gujarat – Rs 15,922 crore
- Tamil Nadu – Rs 14,268 crore
- Karnataka – Rs 13,262 crore
- Uttar Pradesh – Rs 11,280 crore