Sutapa Choudhury, Acting British Deputy High Commissioner in Chennai
The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on Wednesday, will also significantly benefit Tamil Nadu’s export-oriented industries besides boosting bilateral trade between the nations, Dr Sutapa Choudhury, Acting British Deputy High Commissioner to Tamil Nadu, Puducherry and Kerala, said.Speaking to businessline, Choudhury said that export of textiles, engineering goods, auto components, leather and marine products -all of which are key TN’s export powerhouses- are expected to gain from lower tariffs and easier market access.Significant trade deal“The deal is the biggest and most economically significant trade deal that the UK has done since exiting the European Union. Also from India’s perspective, it’s the most comprehensive trade deal in town. So it’s huge for both countries,” Choudhury said.UK and India total trade is a huge relationship and currently worth £48 billion in 2025, and is set for an immediate boost with consumers now enjoying cheaper, quicker, and easier access to the best of British and Indian products and services across both countries, she added.Acknowledging concerns over global trade uncertainty, Choudhury said the agreement would encourage Indian exporters to diversify towards the UK market. “This is a win-win,” she said, adding that the pact sends a positive signal at a time of geopolitical uncertainty by bringing the two countries closer economically.Benefiting sectorsFor Tamil Nadu, she identified six sectors poised to benefit because of the state’s existing manufacturing strengths.The biggest immediate gains are expected in textiles and garments, where Indian exports will receive zero-duty access to the UK from day one, putting manufacturers in Tiruppur and Coimbatore on par with competitors from Bangladesh and Pakistan, Choudhury said.Engineering goods and auto components are other key sectors set to benefit from tariff reductions and simplified rules of origin. “This will make it easier to be compliant with export procedures and increase export volumes if you’re a business in Tamil Nadu and help MSMEs in Chennai and Sriperumbudur region to integrate deeply into the global supply chain,” she saidThe agreement also removes tariffs on telecom equipment, monitors and optical fibre cables, benefiting Tamil Nadu’s electronics manufacturing clusters around Chennai and Kancheepuram.Leather and footwear exports, including products manufactured for British brands, are also expected to gain from duty-free access. Marine products, including shrimp and tuna, will now also enter the UK duty-free, benefiting coastal districts such as Thoothukudi, she pointed out.“We can start accessing Tamil shrimps, prawns and other seafoods in the UK cheaper, and the UK people do love their fish and chips, as you know; so this is a big one,” she said.Meanwhile, the first commercial consignments valued at around US $4,46,046 were officially flagged off to the UK from Chennai on Tuesday as the India-UK trade deal came into force. This included gold jewellery, auto components and leather footwear among other products.Published on July 15, 2026
