The United Kingdom has announced nearly GBP 6 billion in new investments and export wins tied to the UK-India Free Trade Agreement (FTA), with significant implications for the automotive, aerospace and advanced manufacturing sectors. The deal, signed during UK Prime Minister Keir Starmer’s meeting with Indian Prime Minister Narendra Modi, is expected to create over 2,200 jobs in the UK.

Under the FTA, India’s average tariff on UK products will drop from 15 percent to 3 percent, with specific cuts for key sectors. Automotive tariffs of up to 110 percent will be reduced to 10 percent under a quota system, while aerospace tariffs (previously as high as 11 percent) will be eliminated. Tariffs on electrical machinery will also fall, potentially halved or brought to zero, depending on product classification.

The UK government estimates the trade deal will increase UK exports to India by nearly 60 percent and raise bilateral trade by 39 percent by 2040, compared to current projections without the agreement.

British automotive, aerospace, and advanced manufacturing players are among the biggest beneficiaries:

Rolls-Royce and Airbus will begin delivery of aircraft powered by Rolls-Royce engines to Indian airlines as part of contracts worth around GBP 5 billion. The orders are expected to support jobs in Filton, Broughton, and Derby.

International Aerospace Manufacturing (IAMPL) — a joint venture between Rolls-Royce and Hindustan Aeronautics — is investing GBP 30 million to expand its facility in Hosur, India.

Johnson Matthey will invest GBP 4 million in new plants at Taloja and Panki, supporting up to 20,000 jobs in India during construction, alongside over GBP 20 million in secured contracts for engineering and catalyst supply.

Wilson Power Solutions will invest GBP 21 million in Chennai to expand transformer manufacturing capacity.

Helical Tech is committing GBP 5.72 million in overseas direct investment (ODI) to expand its Pune facility as a global supply hub.

The agreement also unlocks procurement opportunities in India’s clean energy market and improves market access for UK manufacturers across sectors such as components, electrical machinery, and mobility technologies.

On the export front, UK companies such as Carbon Clean, Occuity, Aurionpro, DCube AI, and Kyzer Software are tapping into Indian demand for carbon capture, healthcare tech, AI, and fintech. Combined, their deals are set to contribute hundreds of millions in export value over the next five years.

Jonathan Reynolds, Business and Trade Secretary, UK, said, “The almost GBP 6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India.”

The FTA also paves the way for long-term collaboration in defence manufacturing, semiconductors, AI, quantum computing and other critical technologies.

The UK currently imports GBP 11 billion in goods from India annually. With liberalised tariffs, the government expects significant cost savings for UK firms importing automotive and advanced manufacturing components, aiding domestic production and supporting supply chain resilience.

Shailesh Chandra, President, SIAM and Managing Director, Tata Passenger Vehicles & Tata Passenger Electric Mobility, said, “The Indian automobile industry congratulates the Government of India for its tireless efforts in bringing the India–UK Free Trade Agreement (FTA) to fruition. This landmark development marks a significant step forward in strengthening India’s global economic engagement, particularly with developed economies. As two major economies enter a new phase of partnership, SIAM appreciates the Government’s extensive stakeholder consultations throughout the negotiation process. Concluding this transformative agreement amid global trade uncertainties reflects India’s growing leadership in shaping modern trade and investment frameworks.”

The commitments made by the Government of India on automobile sector tariffs strike a thoughtful balance—addressing consumer interests while supporting the broader goals of Indian industry. We view this agreement as part of a wider strategic engagement and believe it opens new avenues for collaboration and opportunity with a key global partner. SIAM remains committed to working closely with the Government of India to ensure the benefits of the agreement translate into greater growth, global competitiveness, and technological progress for the Indian automotive industry,” added Chandra.

Shradha Suri Marwah, President, ACMA, said, “The Automotive Component Manufacturers Association of India (ACMA) welcomes the signing of the India-UK Comprehensive Trade Agreement as a landmark development in the bilateral relationship between the two nations. This agreement is poised to usher in a new era of economic cooperation, fostering greater market access, technology partnerships and value chain integration between the Indian and British automotive industries. The CETA is expected to benefit the Indian auto component sector through enhanced opportunities for exports, streamlined regulatory processes, particularly in key areas such as electric mobility, precision engineering and lightweight materials. Indian MSMEs, which form the backbone of our industry, stand to gain from the liberalised terms of trade and improved access to UK markets. We are hopeful that the agreement will also promote collaboration in R&D, skilling and innovation, especially in green and digital technologies – areas that are crucial for our sector’s long-term competitiveness and sustainability. ACMA congratulates the government of India and the United Kingdom for their vision and commitment in bringing this agreement to fruition. We look forward to working with our counterparts in the UK to realise the full potential of this partnership, and to strengthen our collective contribution to global automotive value chains.”

Dr Anish Shah, Group CEO and MD, Mahindra Group, said, “The landmark trade agreement between India and the UK marks a transformative moment in the global economic landscape. It’s not just a win for trade, but a blueprint for a modern, values-led partnership that puts innovation, sustainability, and inclusive growth at the heart of global collaboration. At Mahindra, we believe deeply in the power of such cross-border partnerships to unlock economic potential, create high-quality jobs, and accelerate progress in future-facing sectors from green mobility and clean energy to digital technologies and advanced manufacturing. The UK-India Vision 2035 aligns closely with our own strategic priorities building resilient supply chains, investing in frontier technologies, and fostering a just transition to a low-carbon economy. As Indian industry becomes increasingly global in its footprint and ambition, we look forward to contributing meaningfully to this next chapter of UK-India cooperation.”

Sudarshan Venu, Managing Director, TVS Motor Company, said, “We are deeply inspired by Prime Minister Narendra Modi’s vision of Viksit Bharat and his unwavering commitment to making India a global manufacturing and design powerhouse. The signing of the India-UK Free Trade Agreement is a pivotal moment—it opens new frontiers for Indian companies to take ‘Make in India’ to the world. We are particularly excited given the launch of new Norton vehicles this year, which will benefit from the strengthening of trade links between India and the UK. It energises our global ambitions and strengthens our resolve to build world-class products and brands.”

A spokesperson for JLR said: “We welcome this free trade agreement between the UK and India, which over time will deliver reduced tariff access to the Indian car market for JLR's luxury vehicles. India is an important market for our British built products and represents significant future growth opportunities.” 

Amit Kalyani, Vice-Chairman & Joint MD, Bharat Forge, said, “Congratulations to Prime Minister Narendra Modi on the historic India–UK deal signed yesterday! #IndiaUKFTA marks a breakthrough for India’s engineering and manufacturing industries, with zero-duty access on about 99% of tariff lines covering almost 100% of trade value. Indian manufacturers can now tap into the UK market with greater competitiveness, improving their global footprint. I’d like to extend my appreciation to Hon’ble Minister of Commerce and Industry, Piyush Goyal ji for his pivotal roles in facilitating this partnership. I look forward to seeing the positive impact of this agreement on trade, investment, and economic growth in both the countries.”

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Mumbai-headquartered automotive major Mahindra Group has highlighted the development of its corporate exhibition space, The Museum of Living History, at Mahindra Towers in Worli, Mumbai, to mark International Museum Day.

Established in July 2022 to document the group’s operations since its inception, the facility records an average attendance of 900 to 1,000 visitors per month, including students, professionals and the public.

The facility incorporates physical and digital art installations to display the timeline of the company’s business sectors. Recent updates made to the repository include a ‘culture wall’ detailing the group’s involvement with the Mahindra Season of Festivals music events, alongside exhibits representing updated corporate values.

The architecture of the 4,000-square-foot space is based on the nautilus shell, utilising a spiral design to illustrate business expansion and structural changes. The interior layout uses variations in light and texture to connect historical records with current industrial projects. The curation, designed by creative consultant Elsie Nanji and experience designer Harsh Manrao, focuses on individual narratives and commissioned artworks rather than traditional historical artifacts.

Anand Mahindra, Chairman, Mahindra Group, said, “The Museum of Living History has evolved to reflect the changing Mahindra business and cultural landscape, while still staying true to the Group’s philosophy and core values. The cornucopia of stories from both businesses and our people is reflective of the brand we are – a living, breathing entity in this ever-changing world.”

The exhibition path follows a nonlinear format, allowing visitors to interpret the installations independently. The museum serves as a central repository for the group's corporate history while functioning as an interactive space for public and institutional visits.

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Chennai-headquartered mid-sized motorcycle major Royal Enfield has announced plans to secure a land parcel for a greenfield manufacturing facility in Tada (Tirupati), Andhra Pradesh.

The company intends to invest approximately INR 25 billion in the expansion project, which will be implemented in phases subject to board approval and market conditions.

At present, the motorcycle manufacturer has a capacity to produce 1.46 million units per year, which is currently operating near full utilisation. This announcement follows an INR 9.58 billion investment made in February 2026 for a brownfield expansion in Cheyyar, Tamil Nadu, which is projected to increase the company's total production capacity to 2 million units annually. In FY2026, Royal Enfield recorded sales of 1.2 million motorcycles.

B. Govindarajan, Managing Director - Eicher Motors, and Chief Executive Officer, Royal Enfield, said, “Royal Enfield's philosophy has always been to stay connected with our community to deliver the best possible products and experiences. We currently operate four world-class manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually. This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth. We are grateful to the Government of Andhra Pradesh for their support and partnership as we strengthen our presence in a state with immense potential. Having already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities, we are proud to contribute to its industrial and economic landscape.”

The company’s existing infrastructure includes four manufacturing bases in Tamil Nadu, alongside seven Completely Knocked Down (CKD) assembly plants located in Bangladesh, Nepal, Brazil, Thailand, Argentina and Colombia. Technical operations are managed through two centres in Bruntingthorpe, UK, and Chennai, India.

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Chinese automotive major BYD is on an expansion spree; the world’s leading electric vehicle manufacturer is said to be in conversation with automakers in Europe for acquiring their underused production facilities, says Bloomberg.

The revelation was made in an interview with Stella Li, Vice-President of International Operations, BYD, who said, “We are talking to not only Stellantis, but also other companies too. We are looking for any available plant in Europe because we want to utilise this kind of spare capacity."

It is important to note that BYD is already setting up its own production facility in Szegad, Hungary, which is set to be operational next year.

The Chinese automaker is already the world’s biggest electric vehicle manufacturer, but has been under pressure on the back of weak domestic demand. It has been actively looking to expand its product portfolio and sales in newer markets.

Interestingly, the report further mentioned that BYD may also be open to acquiring European luxury brands such as Stellantis’ Maserati, which she found ‘very interesting’.

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After reports of a lack of availability or less availability of petrol, diesel and CNG came in from various parts of India, the news is out that the state refiners have hiked the price of petrol and diesel by roughly INR 3 per litre across major parts of India.

The hike in petrol and diesel prices has come after four years and against the background of the West Asia conflict involving US, Israel and Iran. Since the conflict began a few months back, the prices of crude oil per barrel have been rising. They stand at approximately USD 107.09 per barrel as of current. 

The price increase, industry sources aware of the overall development in the crude oil sector indicate, is only about one-tenth of the rise that would be necessary to make up for the losses the oil refiners are incurring at the moment. 
The increase in petrol and diesel prices follows the increase in CNG prices by around INR two sometime ago by providers like Mahanagar Gas. 

While the Union Petroleum Minister is known to assert that there is no shortage of fuel in the country, there have been reports from regions like the stretch of the Mumbai-Goa highway in Maharashtra, where pumps have run dry. There have been reports from regions like Nagpur in central India, where truckers have had to halt their journey as pumps ran dry of fuel earlier than expected and had to limit the quantity of fuel they could provide to their consumers. 

Petrol in Mumbai now costs INR 106.68 per litre, approximately, whereas diesel now costs INR 93.4 per litre, roughly. CNG per kg retails at about INR 84, up from the earlier INR 82.

As a result of the price rise in all the fuels used by the mobility sector, a fear is growing that the freight rates will go up, which would have a ripple effect on the prices of commodities. Other than plastics and metals, the prices of various oils, including cooking oil, are expected to go up somewhat if not sharply.   

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