The Prime Minister has today welcomed nearly £6 billion 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.
The announcement comes as the Prime Minister met with the Prime Minister of India, Narendra Modi, for the signing of the landmark UK-India trade deal. New analysis shows communities across every region of the UK will benefit from its £4.8 billion increase to UK GDP each year.
The deal means British workers will enjoy a collective uplift in wages of £2.2 billion each year and could also see cheaper prices and more choice on clothes, shoes, and food products.
The UK already imports £11 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.
Prime Minister Keir Starmer said: “Our landmark trade deal with India is a major win for Britain. 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 our Plan for Change.
“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 UK.”
Business and Trade Secretary Jonathan Reynolds said: “The billions brought to our economy from the trade deal signed today will reach all regions and nations of the UK so working people in every community can feel the benefits.
“The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.
“This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.”
India’s average tariff on UK products will drop from 15% to 3%, making it easier for British companies selling products to India, from soft drinks and cosmetics to cars and medical devices, to reach the Indian market.
The UK’s manufacturing sectors will benefit from significant tariff reductions including aerospace (as high as 11% reduced to 0%), automotives (up to 110% down to 10% under a quota) and electrical machinery (from up to 22% down to either 0% or a 50% reduction).
18 firms have confirmed new investment including Zerowatt Energy, an AI powered energy intelligence platform setting up its Global HQ in Leicester. The firm will invest £10m and create 50 new jobs across Leicester, Manchester, Edinburgh and London over the next three years.
AI and data services company, DCube AI, is investing £5 million in the UK, unlocking 50 jobs across Manchester and London in the next three years to strengthen its technology offering to UK customers.
The deal is estimated to increase UK exports to India by nearly 60% in the long run, equivalent to an additional £15.7 billion of UK exports to India by 2040, and increase bilateral trade by nearly 39% in the long run, equivalent to £25.5 billion a year compared to 2040 projected levels.
Joe Manning, Managing Director of MIDAS, Manchester’s Inward Investment Agency, said:
“Today’s signing of the UK-India Free Trade Agreement marks a transformative moment for Greater Manchester and its economy.
“Our growing partnership with India, including a new direct flight to Mumbai, India’s Consulate now here, and the recent women’s cricket match at Old Trafford, we’re positioned to capitalise on the £25.5 billion boost in bilateral trade.
“Our upcoming activity, including leading a delegation at Bengaluru’s Tech Summit in November 2025 and Nasscom Tech Leaders in Mumbai in February 2026, will showcase our £5bn technology sector to Indian businesses.”
Jo Ahmed MBE, Co-Chair of The Manchester India Partnership:
“The historic free trade agreement strengthens our already deep bonds with India and creates excellent opportunities for Greater Manchester businesses.
“With trade barriers now removed and our proven track record of attracting Indian investment, we’re ideally placed for accelerated growth. This partnership will showcase Greater Manchester’s capabilities in technology, life sciences, and innovation – sectors where we excel and can offer real value to Indian businesses.”
