Unveiled UK-India Trade Agreement Catapults £6 Billion in Investment and Employment Opportunities
The UK-India Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, marks a significant milestone in global technology collaboration. The deal, spearheaded by Sachin Agrawal, Managing Director for Zoho UK, is expected to bring numerous benefits to every region and nation of the UK.
The agreement aims to foster joint innovation in AI, data science, and advanced technologies, with specific provisions fostering services trade and professional mobility. This collaboration is projected to strengthen across various areas, including AI, health/bio tech, and quantum, spanning multiple industry sectors.
The CETA eliminates tariffs on about 99% of Indian exports to the UK, offering significant market access for UK exports to India. Key sectors such as aerospace, automotive, electrical machinery, and whisky are expected to see improved competitiveness in India, with tariffs reduced or eliminated.
In the realm of advanced manufacturing, the deal facilitates tariff-free access and improved market opportunities for sectors like aerospace, automotive, and clean energy manufacturing. This agreement notably supports the UK’s industrial strategy, reflecting a transition to electric and hybrid vehicles.
Regarding the impact on AI-related fields, while AI is not detailed explicitly in tariff terms, the agreement’s provisions fostering services trade and professional mobility are likely to benefit sectors reliant on AI expertise, such as services and advanced technology, indirectly enabling collaboration and talent exchange between the UK and India.
The deal is forecast to boost the UK’s GDP by £4.8 billion each year, with UK exports to India increasing nearly 60%, adding around £15.7 billion (US$21.3 billion) by 2040. This growth could stimulate UK economic sectors involved in manufacturing, technology, and exports, indirectly influencing wages and employment.
British workers are projected to gain a collective £2.2 billion wage uplift annually due to the deal, with potential savings for a wide range of everyday goods, including clothing, footwear, and food products. The UK imports more than £11 billion in goods from India, and the agreement will make it easier and more cost-effective to bring in vital components and materials.
The renewed Comprehensive and Strategic Partnership, signed by Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, focuses on future collaboration in defence, education, climate, technology, and innovation. While the partnership does not directly address the deal's impact on working communities or the tangible economic impact it may have on them, it does pave the way for Indian firms to establish R&D hubs across the UK.
In conclusion, the UK-India trade deal offers extensive tariff cuts and improved market access in goods and services, especially favoring advanced manufacturing and aligned industrial sectors, while promoting professional mobility that may benefit AI-related fields. Direct wage effects are not specified but economic benefits include export growth and sectoral opportunities likely supporting workers in affected industries.
The UK-India trade deal, expanding across various sectors such as advanced manufacturing and technology, may stimulate wage growth in alignment with the projection of a collective £2.2 billion wage uplift for British workers annually. With specific provisions fostering services trade and professional mobility, AI-related fields could indirectly benefit from the talent exchange between the UK and India.
