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Much of the attention on the India–UK Comprehensive Economic and Trade Agreement has gone to whisky and cars. But some of its most immediate benefits are in advanced manufacturing, where certain products became tariff-free on the first day.
What has changed
Certain aircraft parts and measuring instruments now enter India without tariffs. The agreement also cuts tariffs across wider advanced manufacturing, including electrical circuits and conductors and high-end optical products. Unlike many goods, where cuts are phased in over ten years, these benefits are available now.
Why it matters
India is one of the world's fastest-growing aviation markets. Airlines are expanding their fleets, new airports are opening, and the government is encouraging maintenance, repair and overhaul (MRO), training and component manufacturing at home. Each of these creates demand for precision parts, tooling, test equipment and certification expertise.
The UK has a deep aerospace supply chain, from engines and wings to specialist sensors and metrology. Lower tariffs make UK components more competitive against suppliers from other markets, especially for Indian firms building their own manufacturing and MRO capacity.
Where the opportunities are
- MRO and component supply: parts, tooling and test equipment for growing Indian MRO hubs.
- Pilot and engineer training: simulators, instruments and training partnerships.
- Joint manufacturing: UK design paired with Indian production, supported by India's manufacturing incentives and the agreement's procurement provisions.
- Measurement and testing: precision instruments for laboratories, factories and quality assurance.
What businesses should do now
- Confirm whether your products fall within the tariff-free lines.
- Check rules of origin, especially for parts with global supply chains.
- Review export control and licensing requirements, which still apply to some aerospace items.
- Identify Indian partners in MRO, training or manufacturing.
Our view
Aerospace and precision engineering are long-cycle industries. Relationships formed now, while tariffs have just fallen and Indian capacity is being planned, will shape supply chains for decades. UKISIF can connect members with airport authorities, aviation bodies and Indian manufacturing partners.
General information only. Sources: HLC briefing, GOV.UK. Related: Aviation & Aerospace · CETA hub