PM hails £6bn investment windfall from UK-India trade pact
Prime Minister Keir Starmer today unveiled nearly £6 billion in new investment and export wins as part of a landmark UK-India trade agreement – creating over 2,200 British jobs and unlocking billions more for the economy.
The deal, which comes alongside a fresh comprehensive partnership with India, will see British companies cash in on booming opportunities in high-growth sectors like aerospace, advanced manufacturing, technology and clean energy.
Boost from Coventry to Carlisle
The Prime Minister said communities across the UK will feel the benefits, from Coventry to Carlisle. The agreement is expected to add £4.8 billion a year to the economy. Shoppers could also see cheaper clothes, shoes and food, thanks to lower tariffs on imports.
Starmer said: “This is a major win for Britain. We’re putting more money in people’s pockets and creating thousands of good jobs across the country.”
Whisky and wings lead the charge
Aerospace and spirits firms are among the biggest winners. Airbus and Rolls-Royce have landed contracts worth around £5 billion to supply planes and engines to Indian airlines – helping sustain jobs at sites in Filton, Broughton and Derby.
Whisky producers will see tariffs slashed from 150% to 40% over ten years, giving brands like Chivas Regal and Johnnie Walker a fighting chance in the world’s biggest whisky market.
Indian firms invest big in Britain
Eighteen Indian companies have also committed to investing in the UK, from AI to healthcare and fintech. Highlights include:
- Zerowatt Energy, setting up global HQ in Leicester with £10m investment and 50 jobs.
- DCube AI, putting £5m into Manchester and London, creating 50 new tech jobs.
- Aurionpro, launching its UK HQ with £20m, creating 150 high-value roles.
- LTIMindtree, expanding in London with £1m investment and over 300 new jobs.
Business and Trade Secretary Jonathan Reynolds said: “This proves the UK is the best place in the world to invest and do business.”
Clean energy and tech take centre stage
The deal throws open the doors of India’s fast-growing green energy sector to British firms. Carbon Clean will open a £7.6 million innovation centre in Mumbai, creating 250 jobs in London, Glasgow and Huddersfield.
Techvantage Systems is investing £10 million in its AI platform in London, while PromptTech Global is creating 60 jobs through an £11 million expansion.
From AI to agri-tech, deals galore
The UK’s technology, life sciences and manufacturing powerhouses are all cashing in:
- Occuity and Remidio will bring cutting-edge eye tech to India, exporting £74.3 million worth of products.
- Johnson Matthey will invest £4 million in Indian plants, with construction supporting up to 20,000 jobs.
- Flamingo Pharma, CredAble, Kiya.ai, and RedoQ are all investing millions in UK expansion plans.
Trade set to rocket by 2040
Official estimates say the deal could boost UK exports to India by 60% and increase bilateral trade by £25.5 billion a year by 2040.
The UK’s big hitters in finance, transport and professional services will also benefit from locked-in market access, while industries like aerospace and electrical machinery will enjoy deep tariff cuts.
Cracking down on crime and corruption
Alongside the economic boost, both governments will step up efforts to tackle corruption, fraud and illegal migration. New measures will include joint intelligence operations and a criminal records-sharing agreement.
Spirits are high
Industry bosses have welcomed the deal. Chivas CEO Jean-Etienne Gourgues called it a “game changer”, while Diageo’s Nik Jhangiani said: “We’ll be raising a glass of Johnnie Walker to all those who made it happen.”
The deal now heads for ratification and the business world is ready to get moving.
