India-UK Free Trade Agreement | European aviation giant Airbus and British luxury automobile manufacturer Rolls Royce are among 26 UK-based firms that have secured major commercial agreements following the signing of a Free Trade Agreement (FTA) between India and the United Kingdom on Thursday.
The landmark deal, signed in London by Indian Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer, is expected to boost manufacturing, services, and agriculture sectors in both countries.
As part of the deal, Airbus and Rolls Royce will deliver aircraft and engines to Indian airlines in contracts estimated to be worth nearly £5 billion, ensuring aircraft supply for India’s aviation sector while generating employment in the UK.
Among other UK companies benefiting from the agreement is Carbon Clean, a carbon capture firm originally founded in India and now headquartered in London. It will invest £7.6 million to set up operations in Mumbai.
UK medical technology firm Occuity signed a £74.3 million export deal with Remidio Innovative Solutions, an Indian company specialising in ophthalmic devices. Meanwhile, Johnson Matthey, a specialty chemicals company, secured contracts worth over £20 million, and will invest £4 million in India, supporting up to 20,000 jobs.
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The Marcus Evans Group, a business intelligence and event management company, will open a Mumbai office, establishing an export and investment pipeline worth £69 million over five years.
Indian Firms to Invest in UK as Farmers and Fisheries Gain Trade Access
The agreement also includes investment pledges from 18 Indian firms in the UK. Among them is DCube AI, a Kerala-based artificial intelligence startup, which will invest £5 million across Manchester and London. IT and consulting major LTIMindtree plans to invest £1 million in London and create over 300 jobs, while Aurionpro, a banking and cybersecurity tech firm, will establish a UK office with a £20 million investment, generating over 150 jobs.
Crucially, the FTA removes tariffs on 95% of agricultural and processed food products from India, paving the way for Indian farmers to access British premium markets. Products like turmeric, cardamom, pepper, mango pulp, pickles, and pulses will now be exported with better margins due to tariff-free access.
India’s fisheries sector will also benefit, particularly in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Key exports such as shrimp, tuna, and aquaculture feeds, previously facing duties between 4.2% and 8.5%, will now enjoy duty-free access.
However, the deal excludes concessions on UK dairy products, apples, oats, and edible oils to protect India’s domestic farming sector.
Speaking on the occasion, PM Modi said the FTA will reduce the “cost of doing business” and improve the “confidence of doing business”, bolstering the global economy. Sir Starmer echoed the sentiment, calling the agreement “historic” and highlighting its potential to improve wages and living standards in both countries, while lowering prices for British consumers on Indian-made goods like clothes, shoes, and food.
