Solar, Wind, and Beyond: What the India–UK FTA Means for Clean Energy

India and the United Kingdom have recently formalised the Comprehensive Economic and Trade Agreement (CETA), a landmark bilateral free trade pact that holds major implications for India’s renewable energy sector. 

Aimed at advancing ‘sustainable manufacturing, clean technology collaboration, and investment in renewables,’ the agreement is set to remove customs duties on key clean energy products - including solar modules, wind turbines, and associated components. This positions Indian manufacturers to export to the UK market with zero duty, enhancing their global competitiveness.

The India-UK CETA FTA agreement, signed by Commerce and Industry Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds in the presence of Prime Ministers Narendra Modi and Keir Starmer, eliminates tariffs on 99 percent of tariff lines, significantly easing trade in key sectors. Among its many benefits, the FTA promises to open up the clean energy trade corridor between two major economies.

Good News for the Clean Energy Industry

The FTA builds on the bilateral trade that has already reached USD 56 billion, with a target to double this by 2030, the government’s official statement noted. Industry leaders have lauded the move as a landmark step toward sustainable, cross-border collaboration. 

Sharing his view, Gautam Mohanka, CEO of Gautam Solar, said, “At Gautam Solar, we view this as a strategic opportunity to expand our global footprint while supporting the UK in meeting its ambitious net-zero targets. The Agreement will therefore permit freer and faster trade flows and, at the same time, symbolise the willing cooperation between the two countries to speed up the energy transition at a global level.”

The tariff-free access to the UK market is expected to not only build confidence among Indian manufacturers but also stimulate investment in production capacity and innovation in green technologies. With the UK’s growing demand for affordable and reliable clean energy solutions, the FTA enables it to tap into India’s mature, cost-efficient solar manufacturing ecosystem.

“We are excited about the prospects that the FTA has introduced for sustainable trade, investment, and collaboration in the renewable energy space. Gautam Solar is all set to take the lead in powering a cleaner world alongside you,” Mohanka added.

A New Chapter for Green Trade and Clean Technology

While the FTA covers a broad range of goods and services, its implications for the clean energy sector are especially promising. 

By reducing duties on engineering goods, auto components, electronics, and chemicals - critical to the production of solar panels, batteries, inverters, and EV systems - the agreement will help Indian firms enhance global competitiveness and scale faster.

The FTA is also expected to promote cross-border joint ventures, ease licensing requirements, and offer investor protections, further incentivising collaboration in renewable energy R&D, smart grid solutions, and green hydrogen.

Notably, India is also expected to forego customs revenue of INR 4,060 crore in the first year of the FTA, as tariffs are reduced or eliminated on a wide range of goods, think tank Global Trade Research Initiative (GTRI) said on Monday.

Find the official FTA release here.