India UK Trade
In FY25, India had a trade surplus of US$ 5.9 billion with UK.
Introduction
India and the United Kingdom (UK) share a deep-rooted historical relationship that has evolved into a Comprehensive Strategic Partnership, further strengthened by Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, which seeks to enhance bilateral trade and economic cooperation. Alongside trade, the partnership also focuses on areas such as defence, technology, clean energy, healthcare, and education, reflecting the growing alignment of interests between the two nations.
India-UK Trade
- In FY25, the bilateral trade between India and the UK stood at US$ 23.1 billion as against US$ 21.3 billion in FY24.
- In FY25, India had a trade surplus of US$ 5.9 billion with UK.
- UK is the 6th largest investor in India with cumulative foreign direct investment (FDI) inflows of US$ 35.8 billion from April 2000-March 2025.
Major exports from India to the UK
- India’s export to the UK increased from US$ 12.9 billion in FY24 to US$ 14.5 billion in FY25.
- India exported 5,472 commodities to the UK in FY25.
- Major exported items from India to the UK include electrical machinery and equipment and parts (US$ 2.1 billion), nuclear reactors, boilers, machinery and mechanical appliances (US$ 1.7 billion), mineral fuels, mineral oils and products of their distillation (US$ 1.3 billion), natural or cultured pearls, precious or semiprecious stones (US$ 982 million), pharmaceutical products (US$ 780 million), etc in FY25.
Major imports by India from the UK
- Imports from the UK to India rose to US$ 8.6 billion in FY25 from US$ 8.4 billion in FY24.
- India imported 4,083 commodities from the UK in FY25.
- India's major imports from the UK include natural or cultured pearls, precious or semiprecious stones, pre.metals, clad with pre.metal and articles (US$ 2.3 billion); nuclear reactors, boilers, machinery and mechanical appliances (US$ 1.6 billion); electrical machinery and equipment and parts (US$ 635 million); iron and steel (US$ 432 million); etc. in FY25.
Recent Trends and Developments
- On July 24, 2025, India and the UK signed the Comprehensive Economic and Trade Agreement (CETA), granting duty-free access to 99% of India’s exports and targeting a doubling of bilateral trade in goods and services to ~US 120 billion by 2030.
- India and the UK launched Vision 2035 in London on July 24, 2025, to deepen cooperation across trade, technology, defence, climate, and education, reinforcing their Comprehensive Strategic Partnership.
- The University of Southampton will open India’s first UK branch campus in Gurugram in August 2025, followed by the University of York’s Mumbai campus in 2026-27, offering programmes in technology, business, economics, and creative industries with a strong research focus.
- On March 20, 2025, a delegation from the UK Skills and Chartered Bodies Mission visited Odisha to explore partnerships in vocational education and training. Key discussions with the State’s Skill Development and Technical Education department focused on introducing UK-style apprenticeships and boosting industry-led skilling in sectors such as advanced manufacturing, renewable energy, digital skills, and sustainable infrastructure.
- On February 10, 2025, during the Fourth India-UK Energy Dialogue in New Delhi, India and the United Kingdom launched Phase 2 of the ASPIRE programme to support round-the-clock power supply and accelerate industrial decarbonisation. The two countries also established a UK-India Offshore Wind Taskforce to advance offshore wind ecosystem development, supply chains, and financing models.
- On December 3, 2024, British International Investment committed US$ 33.5 million to India’s Electric Vehicle (EV) sector, funding Everest Fleet, TI Clean Mobility, and Vecmocon, taking its total EV investments in India to US$ 328 million.
- On November 28, 2024, India and the UK signed a pact in Portsmouth to co-develop electric propulsion systems for Indian warships, advancing maritime technology and supporting the 2030 Roadmap.
- The UK is boosting defence ties with India ahead of its 2025 Carrier Strike Group deployment, with August 2024 talks covering leadership, cyber, AI, and strategic cooperation under the 2030 India-UK Roadmap.
India-UK Comprehensive Economic and Trade Agreement (CETA)
India and UK signed a landmark Free Trade Agreement (FTA) in July 2025, unlocking new opportunities for businesses, investments, and employment in both countries.
The agreement grants duty-free access to nearly all Indian exports, including textiles, leather, gems and jewellery, marine products, chemicals, and engineering goods. This will enhance the competitiveness of these products in the UK market and provide a strong boost to India’s manufacturing and agricultural sectors. In return, India will gradually lower tariffs on about 90% of UK imports. Key beneficiaries include British whisky, gin, automobiles, aerospace components, medical devices, and food products such as salmon and lamb. The pact also introduces tariff-rate quotas that enable UK carmakers to export more vehicles to India at significantly reduced duties.
Beyond goods, the FTA facilitates greater mobility for Indian professionals, including chefs, yoga instructors, musicians, IT specialists, and business visitors. Indian workers temporarily posted in the UK will be exempt from social security contributions for up to three years, reducing costs for both employers and employees. The agreement further opens government procurement markets in both countries, allowing Indian and UK companies to bid for major infrastructure and service contracts. This is expected to drive investment, technology transfer, and stronger industry linkages.
Bilateral trade between India and the UK, is expected to double to US$ 120 billion by 2030 from US$ 56 billion in 2024. The deal is set to bring lower prices, greater consumer choice, new jobs, and deeper economic cooperation between the two nations.
The India-UK FTA marks a significant milestone in strengthening economic and strategic ties, laying the foundation for long-term growth, innovation, and partnership.
Conclusion
India-UK relations are evolving into a dynamic partnership built on shared values, strong cultural linkages, and growing convergence across trade, innovation, climate, and security. Recent initiatives in clean energy, healthcare, skills, and technology highlight a forward-looking agenda that goes well beyond traditional sectors. As both nations deepen cooperation, the partnership is poised to create inclusive growth, greater resilience, and new opportunities for businesses and people, while reinforcing their role as natural allies in shaping global outcomes.
Contacts
- High Commission of India, London, UK
Telephone Number: 00-44(0)20-7836147
Email: hcoffice.london@mea.gov.in
Address: High Commission of India, India House, Aldwych, London
Mr. Vikram K. Doraiswami (High Commissioner)
Ms. Sujit Ghosh (Deputy High Commissioner) - British Deputy High Commission in India
Address: Shantipath, Chanakyapuri, New Delhi 110021, India
Contact Forum: https://www.contact.service.csd.fcdo.gov.uk/home
Ms. Christina Scott CMG (Minister and British Deputy High Commissioner to India)
Ms. Lindy Cameron (British High Commissioner to the Republic of India) - The Confederation of Indian Industry (CII), UK
Ms. Shehla Hasan, Director and Head-UK
Email: shehla.hasan@cii.in
Partners
