Inbizzy, LONDON / NEW DELHI – UK and India have signed a landmark trade and investment agreement worth nearly £6 billion, expected to create more than 2,200 new jobs across the UK and open significant high-value export opportunities to the Indian market. This agreement marks a new era of economic collaboration between two of the world’s leading economies, in alignment with the UK Government’s national economic agenda, the Plan for Change.
Key Focus on Technology, Manufacturing, Clean Energy and AI
As part of the agreement, 26 British companies have secured major export contracts, while 18 Indian companies have confirmed plans to invest in multiple UK regions including London, Manchester, Leicester, and Edinburgh.
Highlights include:
- Airbus & Rolls-Royce: Aircraft and engine contracts valued at £5 billion.
- Zerowatt Energy: Establishing its global HQ in Leicester with £10 million investment and 50 new jobs.
- Carbon Clean: £7.6 million investment in Mumbai unlocking 350 jobs across London, Glasgow, Huddersfield, and India.
- Occuity and Remidio: Healthcare tech partnership worth £74.3 million to improve non-invasive eye screening in India.
- LTIMindtree: £1 million digital expansion in London with 300 highly skilled jobs.
- Aurionpro and Cloudseals: Combined investment of over £25 million in AI, finance, and enterprise tech development in the UK.
The investment and export wins reinforce the UK–India economic corridor in strategic sectors such as clean energy, advanced manufacturing, aerospace, and digital innovation.
Economic Uplift Across the UK
Government analysis projects the deal will contribute £4.8 billion annually to UK GDP, with a collective wage uplift of £2.2 billion for British workers. From Coventry to Carlisle, regional economies are set to benefit from sustained job creation, enhanced trade flows, and new growth opportunities for SMEs and global enterprises alike.
Tariff reductions will make UK exports to India significantly more competitive. India’s average tariff on UK goods will fall from 15% to 3%. Scotch whisky duties will be halved immediately from 150% to 75%, and reduced further to 40% over 10 years.
Leader Statements
UK Prime Minister, Keir Starmer, said:
“Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.”
“We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.”
Business and Trade Secretary, Jonathan Reynolds, stated:
“The billions brought to our economy from the trade deal signed today will reach all regions and nations of the UK so working people in every community can feel the benefits.”
“The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.”
Strategic Framework on Security, Migration, and Innovation
Beyond trade, both governments have signed a renewed Comprehensive Strategic Partnership, reinforcing bilateral cooperation in defence, education, climate, innovation, and migration security. Enhanced information sharing on criminal records and joint operational efforts will tackle organised crime, document fraud, and irregular migration more effectively.
This builds on the UK-India Technology Security Initiative signed a year ago, expanding collaboration in critical areas such as telecoms security, semiconductors, AI, quantum tech, biotech, and advanced materials.
About the UK–India Trade Deal
This landmark Free Trade Agreement (FTA) is a cornerstone of the UK’s new industrial and trade strategy. It is expected to:
- Boost UK exports to India by nearly 60% long-term, equivalent to £15.7 billion by 2040 projections.
- Increase bilateral trade by 39%, representing a £25.5 billion increase annually compared to baseline projections.
The agreement also guarantees access for UK firms in India’s expanding procurement and financial services markets and cuts tariffs across key sectors:
- Aerospace: reduced from up to 11% to 0%
- Automotives: up to 110% down to 10% under quota
- Electrical machinery: up to 22% down to 0–50%
