UK, Oman Trade Deals Open New Export Opportunities For Gujarat
Gujarat’s export-oriented industries are expected to gain from India’s recent trade agreements with the UK and Oman, with lower tariffs and wider market access likely to benefit sectors such as engineering, ceramics, textiles, jewellery and pharmaceuticals.
The India-UK Comprehensive Economic and Trade Agreement (CETA) came into force on July 15, eliminating tariffs on 99 percent of Indian exports to the UK. The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which took effect on June 1, provides duty-free access for 99.38 percent of India’s exports to Oman.
India’s exports to the UK were valued at around Rs 1.18 lakh crore in FY2025-26. Gujarat accounted for nearly 13 percent of the total, with exports worth Rs 15,922 crore, making it the second-largest exporting state to the UK after Maharashtra.
The state’s key exports to the UK and Gulf markets include engineering goods, ceramic tiles, jewellery, petroleum products, motor vehicles and pharmaceutical formulations. Exporters expect the tariff benefits to strengthen their competitiveness and partly offset rising freight and logistics costs amid ongoing disruptions linked to the conflict in the Middle East.
Rajkot-based exporter Parth Ganatra, who manufactures submersible pumps and agricultural equipment, said the Oman CEPA had already started generating business opportunities.
“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 and encourage more MSMEs to explore exports to the UK,” he said.
Morbi’s ceramic industry, which exports products worth nearly Rs 800 crore annually to the UK, is also expecting to benefit from the agreement. Nilesh Jetpariya, a ceramic exporter from Morbi, said the removal of tariffs would improve India’s competitiveness against major suppliers such as Spain and Italy.
However, exporters said the benefits of the Oman CEPA were being undermined by anti-dumping duties. According to Jetpariya, Indian ceramic exports to Oman continue to face an anti-dumping duty of around 42 percent despite the removal of customs duties.
Sandeep Engineer, President of the Gujarat Chamber of Commerce and Industry (GCCI), said the India-UK FTA would create new opportunities for Gujarat’s exporters and manufacturers.
“With zero duty, infrastructure products, textiles, generic pharmaceuticals and chemicals from Gujarat will have better market access in the UK,” he said.
