The UK and India have signed a wide-ranging trade agreement projected to unlock more than £6 billion in investment and export opportunities and support over 2,200 UK jobs. Announced during a meeting between Prime Minister Keir Starmer and Indian Prime Minister Narendra Modi, the deal is expected to add £4.8 billion annually to the UK economy and deliver a collective wage boost of £2.2 billion for British workers.
Savings on everyday goods such as clothing, footwear and food are anticipated, with benefits extending across all regions of the UK.
Beyond economic impact, the deal lays the groundwork for closer cooperation in technology and innovation. Sachin Agrawal, Managing Director of Zoho UK, described the agreement as a “major milestone not just for trade, but for global technology collaboration.” He said it will enable Indian firms to establish R&D hubs in the UK and provide UK companies greater access to India’s dynamic tech sector.
This collaboration is set to drive progress in areas including artificial intelligence, health technologies, quantum computing and data science. Agrawal stressed the importance of ethical safeguards, including responsible AI development and secure data practices, to ensure innovation benefits society at large.
The trade agreement is bolstered by a renewed Comprehensive and Strategic Partnership between the two nations. Building on the UK-India Technology Security Initiative (TSI), the partnership strengthens ties across defence, education, climate, and digital innovation.
The TSI has already spurred joint work in telecoms security, AI, semiconductors, biotech and quantum technologies. A joint £7 million research programme is supporting Open RAN and 5G/6G testbed development, reflecting the importance of secure, next-generation telecommunications.
Efforts to align AI governance and promote safe, human-centric AI are central to the TSI’s mission. It also supports academic and industrial research collaboration, workforce development, and greater resilience in critical tech supply chains.
A joint statement from both governments outlines a shared vision of prosperity through tech-led cooperation. Areas of focus include AI, the digital economy, cybersecurity, health innovation and clean growth. The UK-India Tech Hub in India is central to this agenda, fostering connections between hi-tech businesses and encouraging policy collaboration in mobility, manufacturing and healthcare AI.
Together, the trade deal and strengthened technology ties signal a clear intent to position the UK and India as global leaders in ethical, sustainable innovation. As cross-border partnerships grow, so too does the potential to shape the future of AI and digital technologies in a way that delivers economic and societal value on both sides.
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