India and the United Kingdom have restarted The FTA Talk once again as the newly elected Labour government sets trade and trade agreements as their priorities. India being the 3rd largest economy possess a
huge market for the UK’s businesses. On the other hand, the UK is the 5th largest importers of construction material, in which hardware, ceramic tile, plywood, marble, and Bars and Rods are the major imported products with a 29%, 2%, 2%and 2% contribution to India’s trade respectively. This provides a win-win situation for both the countries to conclude the FTA and implement:
NIL custom duty for goods and services, including construction material.
Greater market access for the Indian manufacturers.
A substantial increase in the bilateral trade [20 billion to 24 billion] between both the countries has pushed both the countries to accelerate the negotiation. unfortunately, due to tariff and non-tariff barriers India’s contribution in UK’s import of construction material is relatively low.
but the ongoing FTA includes all such factors and will eliminate many barriers, which will encourage both importers from the UK and exporters from India to explore and diversify different markets.
HOW CAN INDIA BENEFIT ?
Significant development in the UK’s infrastructure is driving the demand for the construction materials like ceramic tile, Portland cement, glues and adhesives, and many more, and since India is home to many manufacturing hubs like Gujarat and Rajasthan, which are significant producers of materials like cement and ceramic tile etc., the demand can be easily met.
The biggest issue faced by many countries is that they have to compromise in terms of quality, this is where India can get an edge, since we have manufacturing facilities and standards aligned with international standards, the UK’s market could easily be captured. Current exporters will then be able to:
Attract foreign investment.
Technological advancement through the UK’s companies. Expansion of the current manufacturing facilities.
Even after the FTA is implemented, there can be a huge gap between potential buyers and suppliers from both countries. This gap is bridged by trade exhibitions and shows, one such event is taking place in Delhi in April 2025 by Vibriant Buidcon, which will include sectors like Portland cement, glues and adhesives, electric products, and many more construction materials. The exhibition in India can be a steppingstone for UK to enter and penetrate the Asian market and enable exporters from India and all around the world who are participating in the exhibition to showcase their quality and standards on a global level.
