The UK Prime Minister has announced nearly £6 billion in new investment and export deals between the UK and India, which will create over 2,200 jobs across Britain. These developments result from Indian firms expanding their presence in the UK and British companies securing opportunities in India, notably in aerospace, technology, and advanced manufacturing sectors.
The announcement coincides with the signing of a landmark UK-India trade deal, expected to boost the UK GDP by £4.8 billion annually. The agreement also anticipates a £2.2 billion annual uplift in wages and reductions in consumer prices due to lowered tariffs on Indian imports such as textiles and food. It includes liberalised trade terms that facilitate the import of key components and materials, particularly benefiting high-value manufacturing industries.
The trade agreement enhances bilateral cooperation in key areas like defence, education, climate, and technology. It strengthens efforts against organised crime, corruption, and illegal migration through joint frameworks for intelligence sharing, document verification, and criminal records exchange. These moves are intended to streamline law enforcement and border management collaboration between the two nations.
Tariff reductions on goods such as aerospace (from 11% to 0%), automotives (from up to 110% to 10%), and electrical machinery (up to 22% to 0–50% reduced) are expected to increase UK exports to India by nearly 60%, equivalent to £15.7 billion by 2040. Bilateral trade is projected to rise by 39%, reaching £25.5 billion annually.
UK clean energy businesses will gain access to India’s large procurement market, driven by India’s transition to renewables. Financial and professional services are also set to benefit from locked-in market access and eased foreign investment rules, particularly in the insurance sector, ensuring parity for UK companies with local Indian firms.
Notable UK companies securing deals include Airbus and Rolls-Royce, with contracts worth £5 billion involving aircraft and engine deliveries to Indian airlines. Other major investments include AI, health tech, advanced materials, fintech, and agri-tech. For instance, Carbon Clean is establishing a Global Innovation Centre in Mumbai, while DCube AI, Occuity, and Johnson Matthey are making strategic investments across both countries.
A wide range of firms have committed to investments and job creation. Examples include Zerowatt Energy (£10m investment, 50 jobs), Aurionpro (£20m, 150 jobs), Allied Digital (£1.2m, 500 jobs by 2028), and Mswipe Technologies (£8m, 50 jobs). These investments span various UK regions and industries, supporting economic growth and technology innovation.
Additional UK export wins and foreign direct investment include deals in sectors like pharmaceuticals (Flamingo Pharma), banking software (Kyzer), AI and data analytics (Techvantage), marine products (Kegien Enterprise), nutraceuticals (Fitworld), and digital transformation (2base technologies). Some businesses, such as RedoQ and PromptTech Global, are establishing their largest overseas operations in India or the UK, reflecting deepening commercial ties.
Export and investment activities also extend to infrastructure, clean water, animal nutrition, and smart city technologies. Companies like Water Offsets UK, Thor Specialities, SmartViz, and Bikal Technologies are entering into joint ventures or expanding operations to support sustainable development, smart infrastructure, and AI innovations in both countries.
Overall, the agreement solidifies a new phase of UK-India economic collaboration, supporting mutual growth, job creation, and sectoral development across advanced industries and emerging markets.
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