UK-India Trade Deal to Create 2,200 Jobs in Britain

The $8.12 billion UK-India free trade deal in new investment and export wins, which will create over 2,200 British jobs across the country as Indian firms expand their operations in the UK and British companies secure new business opportunities in India.

These deals will drive jobs in high-growth sectors like aerospace, technology and advanced manufacturing – supporting engineers, technicians and supply chain workers, in every corner of the UK.

Tha deal was formalised in the presence of the UK Prime Minister Kier Starmer and Indian Prime Minister Narendra Modi on Thursday. From Coventry to Carlisle, a new analysis shows communities across every region of the UK will benefit from its $6.5 billion increase to the UK GDP each year.

The British workers will enjoy a collective uplift in wages of $2.98 billion each year and could also see cheaper prices and more choice on clothes, shoes, and food products.

The UK already imports $14.89 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products. For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.

Major Win for Britain

Keir Starmer said that the trade deal with India is a major win for Britain as 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 the government’s “Plan for Change.”

“We are 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,” he said.

India’s average tariff on UK products will drop from 15% to 3% which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.

Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market.

The two Prime Ministers have also signed a renewed Comprehensive and Strategic Partnership, which will see closer collaboration on defence, education, climate, technology and innovation.

This comes exactly one year since the countries signed the UK-India Technology Security Initiative, which sees joint work on telecoms security and unlocking investment across emerging technologies – telecoms, critical minerals, AI, quantum, health/bio tech, advanced materials and semiconductors.

The UK and India have also agreed to strengthen cooperation in tackling corruption, serious fraud, organised crime, and irregular migration through enhanced intelligence sharing and operational collaboration.

This includes committing to finalising an agreement to share new criminal records, facilitating the exchange of criminal records to support criminal proceedings, maintain accurate watchlists and enable the enforcement of travel bans. These measures represent a significant step forward in joint efforts to combat organised immigration crime.

The deal will also Increase the UK exports to India by nearly 60% in the long run – this is equivalent to an additional $21.25 billion of exports to India when applied to projections of future trade in 2040. Increase bilateral trade by nearly 39% in the long run, equivalent to $34.52 billion a year, when compared to 2040 projected levels of trade in the absence of an agreement.

Meanwhile, 26 British companies have secured new business in India. Airbus & Rolls-Royce will soon begin delivering Airbus aircraft – with over half powered by Rolls-Royce engines – to major Indian airlines as part of around $6.77 billion worth of contracts recently agreed.