đź•’ Last updated on July 29, 2025
India and the United Kingdom have taken a bold step to strengthen their partnership in clean energy.
Tariff-Free Trade Boosts Solar, Wind, and Clean Energy Components
The two nations recently signed a major Free Trade Agreement (FTA), officially called the Comprehensive Economic and Trade Agreement (CETA). This agreement is not just a trade deal — it’s a game-changer for green technology and renewable energy.
Under this new agreement, customs duties on many clean energy products are being removed. This includes solar panels, wind turbines, and important parts used in clean energy systems. With zero import duties, Indian companies can now export these products to the UK without paying extra fees at the border.
This change makes Indian solar and wind manufacturers more competitive in the global market. It also supports the UK’s goal to use more renewable energy. The deal allows for a smooth flow of goods and clean technologies between the two countries. Businesses on both sides can now work faster and more efficiently.
India’s clean energy sector is already strong, especially in solar manufacturing. The FTA now gives Indian companies a direct and cost-effective route to a large and growing UK market. The result is expected to be more production, more exports, and more investments in green innovation.
Clean Energy Trade Taps into $56 Billion India–UK Relationship
This FTA is a big milestone in the growing economic relationship between India and the UK. Today, the two countries have a combined trade value of around USD 56 billion. With the new agreement in place, the goal is to double this amount by 2030. A large part of this growth is expected to come from clean energy.
The removal of customs duties makes clean energy products cheaper for UK buyers. This encourages them to buy more from Indian companies. It also helps the UK reduce its carbon footprint by switching to affordable, clean power solutions from a reliable partner like India.
This agreement also helps Indian manufacturers feel more confident about selling abroad. Companies are now likely to invest more in making better solar modules, wind turbines, and other eco-friendly tools. The result could be a wave of new jobs, cleaner technologies, and smarter energy systems.
In addition to solar and wind, the FTA also covers parts and equipment used in electric vehicles (EVs), batteries, and smart grid systems. These products are essential to modern, sustainable infrastructure. By easing trade on these items, the deal helps both countries move faster toward a greener future.
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India to See Surge in Investment and Innovation in Green Tech
The India–UK FTA does not just reduce costs — it also creates new opportunities for collaboration. Indian and UK companies can now form joint ventures and work together on research and development (R&D) in clean energy. Areas like smart grids, energy storage, and green hydrogen stand to benefit.
The FTA removes many old trade barriers, such as complex licensing and certification processes. It also provides investor protections. These changes make it easier for companies to launch new projects and share ideas across borders. This is likely to encourage long-term partnerships in renewable energy technologies.
Even though India will give up customs revenue worth INR 4,060 crore in the first year due to lower tariffs, the expected gains in clean energy trade, investment, and innovation are much larger. The deal is built not just for trade, but also to speed up the global shift to clean energy.
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By also removing duties on auto parts, electronics, and engineering goods, the agreement supports the full supply chain of renewable energy. These products are key to building solar panels, EV batteries, and inverters. Easier access to these parts will help Indian firms scale up faster.
Together, the India–UK agreement opens a new door for clean energy trade and collaboration. With more affordable technology and stronger global ties, the clean energy industry in both countries is set to grow like never before.