Rajkot: Gujarat’s export-oriented industries are set to gain significantly from India’s latest free trade agreements with the UK and Oman, with duty-free market access expected to boost exports of engineering goods, ceramics, jewellery and pharmaceuticals even as exporters continue to grapple with soaring freight costs and supply chain disruptions triggered by the Middle East conflict.The India-UK Free Trade Agreement (FTA), officially known as the Comprehensive Economic and Trade Agreement (CETA), came into effect on July 15, with the UK eliminating tariffs on 99% of Indian exports. Earlier, the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which became operational on June 1, granted duty-free access to 99.38% of India’s exports. Official figures for FY 2025-26 show 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 key 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 their competitiveness and help offset the sharp increase in logistics costs witnessed over the past several months.Parth Ganatra, a Rajkot-based exporter of submersible pumps and agricultural equipment, said the Oman CEPA has already started translating into business.“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. It will encourage many MSMEs that are not exporting to the UK to participate in trade exhibitions and explore new business opportunities,” he said.Engineering exports from Rajkot to the UK were worth around Rs 56 crore last year. However, exporters said the ongoing conflict in the Middle East has sharply increased shipping and container freight charges, squeezing profit margins. They believe the savings from duty-free market access will partly compensate for the higher logistics costs.Morbi’s ceramic industry, which exports products worth nearly Rs 800 crore annually to the UK, is also expected to receive a major boost from the agreement.“Our biggest competitors in the UK market are Spain and Italy. The FTA will improve our competitiveness and help us expand our presence there,” said Nilesh Jetpariya, a leading ceramic exporter from Morbi.However, Jetpariya said exporters continue to face a major hurdle in Oman despite the CEPA. The Morbi Ceramic Association has urged the Union government to take up the issue of anti-dumping duties with the Omani government through diplomatic channels.“Although customs duty has been eliminated under the CEPA, Indian ceramic exports to Oman continue to attract an anti-dumping duty of around 42%, which virtually wipes out the benefits of the agreement,” he said.Sandeep Engineer, president, Gujarat Chamber of Commerce and Industry (GCCI) said, “India-UK FTA will provide more opportunities to Gujarat exporters and manufacturers. With zero duty, infrastructure products, textiles, generic pharmaceuticals and chemicals from Gujarat will have better market access in the UK.”
