India-UK Trade Deal to Boost Indian Cleantech Exports Amid Renewable Energy Slump in US

New Delhi, Jul 31 (KNN) India and the United Kingdom signed a landmark free trade agreement (FTA) on July 24, 2025, which is set to give a big boost to Indian renewable energy exports.

The deal includes zero tariffs on cleantech products such as solar modules, wind turbines, and related engineering equipment, making Indian goods more competitive in the UK market.

This agreement comes at a crucial time as renewable energy demand from the US has slowed due to changes in its incentive policies. With this slump reducing exports to the US, India’s access to the UK market offers an important alternative for its cleantech industry.

Vinay Rustagi, Chief Business Officer at Premier Energies, welcomed the agreement, calling it “perfectly timed” and a great opportunity for Indian manufacturers who are rapidly enhancing their capacities and technology. He also expressed hope for similar trade agreements with other major markets soon.

Besides eliminating tariffs, the UK plans to support India in other clean energy areas, including green hydrogen, civil nuclear energy, offshore wind, and climate finance through multilateral development banks.

As part of the India-UK Vision 2035, both countries are also committed to reforming global finance systems to provide affordable climate funding to developing nations.

The trade deal is expected to attract more foreign investment into India’s clean energy sector. For example, UK-based Carbon Clean has already opened a Euro 7.6 million Global Innovation Centre in Mumbai.

The company anticipates £83 million in UK exports over the next five years and plans to create 350 jobs across both countries.

Market research indicates strong growth potential for renewables. The UK’s renewable energy market was valued at $20.3 billion in 2023 and is expected to grow at an annual rate of 20.3% through 2030.

Meanwhile, India’s renewables sector stood at $23.9 billion in 2024, with a forecasted growth rate of about 9% annually from 2025 to 2033.

This new trade deal marks an important step to diversify India’s cleantech exports, boost investment, and deepen cooperation with the UK in clean energy technology.

(KNN Bureau)