UK-India Trade Agreement Opens up £6 Billion in Investment and Employment Opportunities
The UK and India are set to strengthen their bilateral ties with the signing of a comprehensive economic and trade agreement (CETA), scheduled to take place soon. This deal, signed in July 2025, emphasises collaboration in advanced technologies such as AI and data science, digital and financial services, though it does not provide extensive technical details publicly on specific AI or data science programs within the deal.
The agreement features provisions for digital growth, including a pioneering standalone financial services chapter. This chapter locks in long-term market access worth £13.6 billion for UK financial and fintech companies in India, facilitating cooperation in digital finance, which often involves advanced data science, AI, and technology applications.
The deal also aims to reduce trade barriers, simplify customs, and support digital trade, making it quicker and cheaper for businesses, including SMEs, to trade digitally between the two countries. This supports growth in sectors reliant on advanced technology and data flows.
While the agreement primarily focuses on tariff reductions and market access for goods and services, the UK government highlighted a notably flexible Rules of Origin framework that eases compliance and supports integration of supply chains involving advanced technology components.
The partnership aims to boost bilateral trade and investment in key industrial sectors, including engineering products and electrical machinery, areas that increasingly incorporate AI and advanced tech components. The agreement includes provisions that facilitate professional mobility and service trade, which may indirectly boost collaboration in AI, data science, and tech sectors by enabling skilled practitioners to work across borders more easily.
Sachin Agrawal, Managing Director for Zoho UK, stated that the UK-India deal is a significant milestone for global technology collaboration. The deal is forecast to boost the UK's GDP by £4.8 billion each year and is expected to result in stronger collaboration in various areas including AI, health/bio tech, and quantum across multiple industry sectors.
Working communities in the UK are projected to see tangible economic impact from the deal, with British workers gaining a collective £2.2 billion wage uplift annually. The deal is a significant step forward in bilateral cooperation and the billions generated from this trade deal are positioned to be felt across all parts of the UK economy.
The agreement builds upon the UK-India Technology Security Initiative signed one year ago, which has already initiated joint activity in telecoms security, critical minerals, AI, quantum, biotech, advanced materials, and semiconductors. The Prime Ministers have also signed a renewed Comprehensive and Strategic Partnership, strengthening future collaboration across defense, education, climate, technology, and innovation. This agreement supports the current administration's Plan for Change's strategy to grow the economy and raise living standards.
However, it's important to note that the agreement does not mention any specific forecasted economic benefits or wage uplifts for British workers or regions, nor does it specify any potential impact on the UK's GDP. Additionally, the deal does not mention any potential savings for everyday goods like clothing, footwear, or food products.
In summary, while the UK-India trade agreement strongly supports growth in digital trade, fintech, and technology-related sectors, the publicly available details focus on market access, tariffs, and financial/legal frameworks rather than explicit AI or data science joint initiatives. The agreement creates a favorable backdrop for future bilateral collaboration in advanced technologies through reduced barriers, improved service access, and digital trade facilitation.
- The comprehensive economic and trade agreement between the UK and India includes provisions for digital growth, specifically a standalone financial services chapter that supports cooperation in digital finance, which often involves advanced data science, AI, and technology applications.
- The UK-India trade deal, by reducing trade barriers and simplifying customs, aims to support growth in sectors reliant on advanced technology and data flows, indirectly promoting collaboration in AI, data science, and technology sectors.
