Historic UK-India Trade Deal to Boost British Jobs:The UK and India have signed a historic trade deal unlocking nearly £6 billion in investments and exports, creating over 2,200 British jobs. The deal slashes tariffs, boosts sectors like aerospace, tech, clean energy, whisky, and strengthens cooperation in defence, innovation, and migration control. Discover full details on business wins, regional impact, and strategic partnerships.
Historic UK-India Trade Deal to Boost British Jobs, Economy, and Strategic Ties
UK-India Trade Deal:In a landmark development, the United Kingdom and India have signed a comprehensive trade agreement set to transform economic and strategic cooperation between the two nations. The deal is expected to unlock nearly £6 billion in new investment and export wins, creating more than 2,200 jobs across the UK and delivering a significant boost to high-growth sectors including aerospace, advanced manufacturing, technology, and clean energy.
UK-India Trade Deal:The Prime Ministers of both nations, Keir Starmer and Narendra Modi, met to sign the historic pact that aims to deliver on the UK government’s “Plan for Change”. According to new figures, the deal is projected to contribute an additional £4.8 billion to the UK’s GDP annually, while providing a collective uplift of £2.2 billion in wages for British workers. Furthermore, consumers in the UK could see lower prices and a wider range of goods such as clothing, shoes, and food products due to tariff reductions.
UK-India Trade Deal:British firms currently import £11 billion worth of goods from India. With reduced tariffs on Indian imports, including components used in manufacturing and luxury goods, UK businesses stand to save significantly. Meanwhile, British exports to India are projected to increase by nearly 60% in the long term, equivalent to an additional £15.7 billion by 2040. Bilateral trade is forecasted to rise by 39%, or £25.5 billion annually, compared to projected figures without the deal.
UK-India Trade Deal:One of the major benefits of the trade agreement is the drastic reduction in Indian tariffs on British goods. The average tariff on UK products will fall from 15% to 3%, significantly easing access for goods like soft drinks, cosmetics, cars, and medical devices. Notably, the whisky industry will benefit enormously with tariffs being slashed from 150% to 75% immediately, and further down to 40% over the next decade — giving the UK an edge over global competitors in the Indian market.
UK-India Trade Deal:In the aerospace sector, the agreement removes tariffs up to 11%, which will go down to zero. Automotive tariffs will fall from as high as 110% to 10% under a quota system, while electrical machinery will see reductions from up to 22% to either zero or a 50% cut. This is expected to drive substantial export growth and reduce business costs.
UK-India Trade Deal:The agreement also includes a strong strategic component. A renewed Comprehensive and Strategic Partnership was signed, reinforcing collaboration on defence, education, climate change, and cutting-edge technologies such as AI, quantum computing, biotech, advanced materials, and semiconductors. The deal builds on the UK-India Technology Security Initiative, signed last year, which already laid the groundwork for cooperation in telecoms security and investment in emerging technologies.
UK-India Trade Deal:Security cooperation will also deepen. The UK and India have agreed on new frameworks to combat organised crime, irregular migration, and document fraud. This includes finalising a criminal records sharing agreement to aid in the enforcement of travel bans, criminal proceedings, and maintaining accurate watchlists — a major step forward in immigration crime enforcement.
UK-India Trade Deal: The deal is also opening doors in clean energy. British firms will gain unprecedented access to India’s procurement market as it transitions to renewable energy, providing new opportunities for clean energy exports and investment. The financial and professional services sector will also benefit, with India committing to lock in access and treat UK firms on equal footing with domestic providers.
A range of businesses have announced their participation in the UK-India trade surge:
- Airbus and Rolls-Royce will deliver aircraft and engines worth around £5 billion to Indian airlines, supporting hundreds of jobs in Filton, Broughton, and Derby.
- Carbon Clean, a carbon capture company, will invest £7.6 million in a Global Innovation Centre in Mumbai, supporting 250 jobs in the UK and 100 in India.
- AI firm DCube AI is investing £5 million in the UK, creating 50 jobs in Manchester and London.
- Occuity, a UK healthcare AI company, will partner with Remidio in India to deliver ophthalmic technology, with an export value of £74.3 million over five years.
- Johnson Matthey will invest £4 million in India and has secured over £20 million in contracts, creating up to 20,000 construction jobs in India.
- Marcus Evans Group is launching a Global Technology office in Mumbai and expects a combined export and investment win of £69 million.
- Zerowatt Energy will set up its global HQ in Leicester, investing £10 million and creating 50 jobs across the UK.
- LTIMindtree is expanding in London with 300 new tech jobs and a £1 million investment into a new AI innovation studio.
- Aurionpro is investing over £20 million to establish its UK headquarters and AI R&D labs, creating more than 150 high-value jobs across the UK in the next three years.
Business leaders have praised the agreement. Rolls-Royce CEO Tufan Erginbilgic welcomed the provisions supporting civil aerospace trade, while Diageo interim CEO Nik Jhangiani called it a “great moment for Scotch and Scotland.” William Bain of the British Chambers of Commerce described it as a “clear signal of the UK’s continuing commitment to free and fair trade.” Jean-Etienne Gourgues, CEO of Chivas Brothers, noted that the deal could be a game-changer for Scotch exports, helping create jobs in both Scotland and India.
Currently, around 16,000 UK firms already trade with Indian companies, and this agreement is expected to significantly boost that number. It will create new openings in the transport, travel, creative, and professional services sectors.
The trade deal is seen as a milestone that not only strengthens the UK’s economic standing but also reinforces long-term strategic cooperation with one of the world’s fastest-growing economies. With ratification on the horizon, businesses on both sides are preparing to seize the opportunities this transformative agreement presents.
Disclaimer:
The information provided in this blog is based on official announcements and publicly available sources at the time of writing. While every effort has been made to ensure accuracy, readers are advised to verify facts independently. This blog is intended for informational purposes only and does not constitute professional or legal advice. The author and publisher are not responsible for any decisions made based on the content of this article