India and the United Kingdom have finalized a long-anticipated trade deal, marking a pivotal moment in strengthening their economic and technological alliance. With the U.K. already importing over £11 billion ($14.5 billion) worth of goods from India each year, this agreement will significantly lower tariffs on Indian products, making high-quality Indian goods more affordable and readily available to British consumers.
The trade pact is reinforced by a broader Comprehensive and Strategic Partnership, signaling a significant leap in cooperation across research, innovation, and critical emerging industries. This breakthrough comes exactly one year after the launch of the U.K.-India Technology Security Initiative, which has driven collaboration in key areas such as telecom security, artificial intelligence (AI), quantum computing, critical minerals, and biotechnology.
In a show of momentum, nearly £6 billion ($7.9 billion) in new investments and export agreements have already been confirmed between Indian and British companies, bringing with them over 2,200 new jobs throughout the U.K., the British government said in a statement. The deal deepens bilateral ties and accelerates both nations’ emerging technology ambitions in the global innovation economy.
India is set to significantly reduce its average tariff on U.K. goods — from 15% to 3% — opening up major opportunities for British businesses. This change will make it considerably easier for U.K. exporters to compete and expand in the Indian market amid ongoing global trade disruptions driven by United States President Donald Trump’s tariff measures.
“Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the U.K., unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change,” British Prime Minister Keir Starmer said.
“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 U.K.,” Starmer added.
For Starmer, the deal aligns with his agenda to stimulate economic growth. While the agreement is projected to boost the U.K.’s annual gross domestic product (GDP) by £4.8 billion ($6.5 billion) — a modest increase — it represents a crucial step in rebuilding investor confidence and signaling the government’s commitment to forging new economic opportunities.
The India-U.K. trade agreement follows three years of intense negotiations, during which the two countries tackled complex issues such as visa rules, tariff cuts, and tax incentives. Talks concluded in May, resulting in the U.K.’s most substantial trade deal since Brexit and one of India’s most significant trade achievements in recent years. At the same time, the Indian government is working swiftly to finalize an agreement with the U.S., when increased tariffs are scheduled to take effect.
For Indian Prime Minister Narendra Modi, the deal with the U.K. supports his broader strategy of positioning India as a key player in global supply chains, offering an alternative to existing manufacturing hubs. As India’s first major trade pact in over ten years, the agreement demonstrates its readiness to reduce trade barriers to attract foreign investment, especially as it continues negotiations with the United States and the European Union.
India-UK Vision 2035
During their meeting in London, the Prime Ministers of India and the United Kingdom endorsed the urgent and forward-looking “India-U.K. Vision 2035,” signaling a renewed commitment to fully harness the potential of their technology partnership. As global dynamics shift rapidly, this initiative aims to position both nations as key drivers of shared prosperity, security, and sustainability.
The new Vision 2035 agreement lays an ambitious roadmap with clearly defined goals and milestones to fuel long-term collaboration, especially in high-impact areas. It emphasizes rapid advancement in cutting-edge technology and research, expanding on the existing Technology Security Initiative. The partnership will intensify joint efforts in future telecoms, AI, and critical minerals, while setting the foundation for deeper cooperation in semiconductors, biotechnology, quantum technologies, and advanced materials.
“The India-U.K. Comprehensive Economic and Trade Agreement (CETA) is a game-changer…Confident that businesses on both sides will build on their complementary strengths, further deepening the India-U.K. economic partnership,” Indian Commerce & Industry Minister Piyush Goyal said on X.
Recognizing the need for global institutions to evolve, both countries will also push for urgent reform of the United Nations, including the Security Council, and other major multilateral bodies such as the Commonwealth, World Trade Organization (WTO), World Health Organization (WHO), International Monetary Fund (IMF), and World Bank, to ensure these institutions reflect present-day realities and are equipped to confront emerging global challenges head-on.
The newly signed trade agreement is set to deliver an immediate boost to economic growth for both India and the U.K., creating jobs and driving shared prosperity. With a sense of urgency and momentum, both nations have pledged to fast-track the conclusion of a Bilateral Investment Treaty (BIT) to deepen investment ties.
Expanding tech collaborations
Building on existing platforms such as the U.K.-India Technology Security Initiative, the Science and Innovation Council, and the Health and Life Sciences Partnership, both nations will expand cooperation across critical and emerging technologies, clean energy, and health innovation. These efforts aim to strengthen national resilience, stimulate trade and investment, and create high-value jobs.
To advance this collaboration, the U.K. and India will strengthen research and innovation ecosystems by introducing and expanding the U.K.-India Research & Innovation Corridor to connect talent, institutions, and programmes across both countries. This includes closer cooperation between innovation hubs, startups, accelerators, catapults, and superclusters to raise research output and technology commercialization.
In order to lead in AI, both nations aim to establish a U.K.-India Joint Centre for AI to drive real-world, trustworthy AI applications. The Centre will focus on creating open-source solutions that can scale across both economies and power next-generation innovation and productivity.
India and the U.K. also aim to advance secure and resilient telecoms by deepening joint research and development in advanced telecommunications, including secure-by-design infrastructure, 6G development, and cyber resilience. An India-U.K. Connectivity Innovation Centre will be created to expand digital inclusion and work together at global standard-setting bodies such as ITU and 3GPP for 6G.
Both countries aim to boost deep-tech collaboration by advancing joint work under the Technology Security Initiative in priority areas like semiconductors, quantum technologies, advanced materials, and cybersecurity. They would also collaborate in space innovation and strengthen links between the U.K. and Indian space sectors to explore joint research, technology development, and commercial ventures in space science and satellite technologies.
UK-India trade pact secures several tech investments
Meanwhile, 26 British companies have secured new business in India, which will help sustain hundreds of jobs across their respective sites, according to the statement from the British government.
Moreover, 18 companies have confirmed new investments, including India’s Zerowatt Energy, an AI-driven energy intelligence platform that has chosen Leicester for its global headquarters. The company plans to invest £10 million ($13.2 million) and create 50 new jobs across Leicester, Manchester, Edinburgh, and London over the next three years.
Other U.K. and Indian companies have announced nearly £6 billion ($7.9 billion) in new investments and export deals, set to create over 2,200 jobs across the U.K. Among them is India’s DCube AI, an AI and data services firm, which is investing £5 million ($6.6 million) to expand its U.K. presence. The investment will generate 50 new jobs across Manchester and London over the next three years, enhancing the company’s technology offerings for U.K. clients.
U.K.-based AI healthcare company Occuity has partnered with Remidio Innovative Solutions Pvt. Ltd., a leading Indian manufacturer and distributor of ophthalmic medical devices. The collaboration will bring Occuity’s advanced screening technologies to India, improving access to innovative diagnostics and generating an export value of £74.3 million ($98.5 million) over the next five years.
Likewise, LTIMindtree, a global technology consulting and digital solutions firm, is set to expand its operations in London with a £1 million ($1.3 million) investment. The expansion will include launching a cutting-edge AI innovation studio and showcase lab, and will create over 300 highly skilled jobs.
Similarly, Aurionpro, a global leader in enterprise technology across banking, payments, insurance, data centers, and public sector technology, is investing over £20 million ($26.5 million) to establish its U.K. headquarters. The investment will create more than 150 high-value jobs across multiple U.K. locations over the next three years. Aurionpro will also launch AI-powered R&D labs in collaboration with leading U.K. universities to develop next-generation transport technologies and spearhead the global Safe Superintelligence (SSI) movement, promoting the safe and ethical development of AI.
At the same time, Techvantage Systems, a global leader in AI and data analytics, is set to invest £10 million ($13.2 million) in London over the next three years to expand its flagship platform, Zentis AI, which focuses on automating processes in the banking, financial services, and insurance (BFSI) sector. This strategic investment will create 50 high-quality jobs, with plans to scale operations and drive innovation across the U.K.
“The billions brought to our economy from the trade deal will reach all regions and nations of the U.K. so working people in every community can feel the benefits,” Jonathan Reynolds, U.K.’s Business and Trade Secretary, said in the statement. “The almost £6 billion in new investment and export wins will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the U.K. is the best place in the world to invest and do business.”
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