£6 Billion Boost, Thousands Of Jobs: Why FTA Deal With India Is 'Major Win' For Starmer Govt
Analysis indicates the trade pact will increase UK GDP by £4.8 billion annually, while delivering a £2.2 billion boost to British wages.
The UK is set to gain significantly from its newly inked Free Trade Agreement (FTA) with India, with nearly £6 billion in fresh investments and export wins projected to deliver over 2,200 new British jobs and open up high-growth sectors for trade. The landmark agreement is expected to stimulate regional economies, slash tariffs on UK goods, and reinforce the country's global competitiveness in areas like aerospace, AI, advanced manufacturing and financial services.
Prime Minister Keir Starmer hailed the deal as a cornerstone of his government’s economic strategy. “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,” he said.
Jobs Across Regions, From Whisky To Aerospace
New analysis indicates the trade pact will increase UK GDP by £4.8 billion annually, while delivering a £2.2 billion boost to British wages. In a direct uplift to families, consumers could also benefit from lower prices on everyday goods like shoes, food and clothing. The agreement reduces India's average tariff on UK products from 15 per cent to just 3 per cent, opening access for a range of British exports from cosmetics and cars to medical devices.
British whisky distillers are among the biggest winners, with punitive tariffs on Scotch cut from 150 per cent to 75 per cent immediately and scheduled to fall further to 40 per cent over the next decade. “This agreement marks a great moment for both Scotch and Scotland,” said Nik Jhangiani, Interim Chief Executive of Diageo. “We’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”
Aircraft manufacturers are also set to benefit. Airbus and Rolls-Royce are delivering planes and engines to Indian airlines in deals worth around £5 billion, sustaining hundreds of jobs in Filton, Broughton and Derby. Rolls-Royce CEO Tufan Erginbilgic said: “These agreements will benefit Rolls-Royce and our customers, paving the way for future aerospace growth in India.”
Indian Investment Fuels UK’s Tech, Clean Energy Sectors
Beyond export wins, the FTA has triggered a surge in Indian investment in the UK. Eighteen firms have announced expansion plans, including AI energy platform Zerowatt Energy, which will set up a global HQ in Leicester and create 50 jobs across several UK cities.
Green and clean technologies are also receiving a boost. UK-based Carbon Clean, which has invested £7.6 million in an innovation centre in Mumbai, is unlocking 250 UK jobs across London, Glasgow and Huddersfield. Meanwhile, DCube AI will add 50 jobs through a £5 million investment in Manchester and London, while Aurionpro plans to hire 150 across the UK and open AI R&D labs in partnership with local universities.
On the other side, British companies are also finding fresh opportunities in India. Occuity, a UK healthcare innovator, has secured a partnership to deliver £74.3 million worth of eye screening tech. Chivas Brothers CEO Jean-Etienne Gourgues added, “India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands.”
Long-Term Bilateral Growth
According to government estimates, the FTA will result in a near-60 per cent surge in UK exports to India and expand total bilateral trade by nearly 39 per cent by 2040. The agreement aligns with the UK’s broader industrial strategy, offering reduced tariffs for key sectors such as aerospace (from 11 per cent to zero), automotive (down from 110 per cent to 10 per cent), and electronics.
Business and Trade Secretary Jonathan Reynolds noted the broad reach of the deal. “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 pact also extends beyond commerce. The two governments have agreed on enhanced cooperation in combating organised crime, illegal migration and fraud through new intelligence-sharing frameworks and a soon-to-be-finalised criminal records agreement.
As the UK positions itself for post-Brexit global trade leadership, the India FTA marks a significant leap forward in strengthening economic ties with one of the world’s fastest-growing economies, while creating real, tangible benefits for British industries, workers and households.
Related Video
Union Budget 2025: Arvind Kejriwal lists the shortcomings of the Modi government's budget | ABP News | AAP
Top Headlines
