India-UK Sign Historic Trade Deal, Unlocking Billions in Deals

• India and the UK signed a comprehensive Free Trade Agreement on Thursday.
• Airbus and Rolls-Royce secured nearly £5 billion in deals to supply aircraft and engines to Indian airlines.
• British firms like Carbon Clean, Occuity, Johnson Matthey, and Marcus Evans Group announced significant investments in India.

GG News Bureau
London, 24th July: India and the United Kingdom on Thursday signed a comprehensive Free Trade Agreement (FTA), immediately ushering in lucrative deals worth billions of pounds for firms in both countries. European aviation giant Airbus and iconic British luxury automobile manufacturer Rolls-Royce are among the 26 British companies that have secured significant contracts.

Airbus, headquartered in France, and Rolls-Royce, based in the UK, are set to deliver aircraft and engines to Indian airlines in deals valued at nearly £5 billion. This collaboration will benefit India’s burgeoning aviation sector by providing necessary equipment and secure jobs within the UK’s manufacturing industry.

Read More: PM Modi Praises UK Ties, Announces Key Agreements

Several British firms have also confirmed investment plans in India. Carbon Clean, a carbon capture service provider founded in India and now based in London, will invest £7.6 million in a new Mumbai office. UK-based medical technology firm Occuity signed a £74.3 million export deal with India’s Remidio Innovative Solutions. Specialty chemicals firm Johnson Matthey secured contracts worth over £20 million and plans to invest £4 million in India, potentially supporting up to 20,000 jobs. The Marcus Evans Group, a global business intelligence agency, will open a new Mumbai office with an anticipated export/investment pipeline of £69 million over five years.

Concurrently, 18 Indian firms have announced investment plans in the UK. This includes DCube AI, a Kerala-based artificial intelligence firm, which will invest £5 million in Manchester and London. IT services and consulting firm LTIMindtree will invest £1 million in its London operations, creating over 300 jobs. Aurionpro, a tech firm focused on banking and cybersecurity, will invest a substantial £20 million to establish a UK office, generating over 150 jobs.

The “historic” trade deal was formally signed in London this morning by Prime Minister Narendra Modi, currently on a two-day visit to England, and his counterpart, Sir Keir Starmer. Beyond boosting manufacturing and services sectors and creating tens of thousands of jobs, the agreement is set to significantly benefit Indian farmers by removing 95% of British tariffs on agricultural and processed food items. Indian products like turmeric, pepper, cardamom, mango pulp, pickles, and pulses are expected to gain wider access to premium markets, ensuring better profit margins for farmers. Imports from the UK will similarly enjoy duty-free access to India’s vast market. However, dairy products, apples, oats, and edible oils from the UK will not receive concessions to protect domestic Indian farmers.

The agreement also brings considerable advantages to India’s fisheries sector, particularly in coastal states such as Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Exports like shrimp and tuna, which previously faced duties ranging from 4.2% to 8.5%, will now access the British market duty-free.

Prime Minister Modi stated that the agreement would reduce the “cost of doing business” and enhance “confidence of doing business” between the two major economies, thereby strengthening the global economy. Sir Keir Starmer hailed the deal as “historic,” predicting that “both countries will see a boost in wages and living standards” and that it “will bring down the prices of Indian clothes, shoes, foods for British citizens.”