India-UK Free Trade Deal Benefits: Airbus and Rolls Royce have clinched a massive euro 5 billion deal to supply aircraft and engines to Indian airlines, following the signing of a landmark Free Trade Agreement (FTA) between India and the United Kingdom. The deal, announced on Thursday, is expected to boost India's aviation sector while creating thousands of jobs in the UK.
Airbus, though headquartered in France, has a strong industrial presence in the UK, while Rolls Royce is based in Derby. Both companies are among 26 British firms set to benefit from the new trade agreement. The partnership reflects growing cooperation between the two nations across key sectors like aerospace, technology, and healthcare.
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One of the British companies expanding into India is Carbon Clean, a carbon capture solutions firm originally founded in India in 2009 and now headquartered in London. The company plans to invest 7.6 million euros in opening a new office in Mumbai.
In the healthcare space, UK-based med-tech company Occuity, which designs non-contact handheld devices for eye diagnostics, has signed a 74.3 million euros export deal with Indian firm Remidio Innovative Solutions, NDTV reported.
Meanwhile, specialty chemicals maker Johnson Matthey will invest euro 4 million in India as part of contracts worth over 20 million euros. The company’s expansion is expected to support up to 20,000 jobs.
The trade deal has also prompted Indian companies to look toward the UK. A total of 18 Indian firms have committed to investing in Britain. Among them is DCube AI, a Kerala-based AI firm, which has announced plans to invest 5 million euros in Manchester and London.
The agreement was called as “historic” by both sides was signed in London by Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer. Modi is currently on a two-day official visit to the UK.
Beyond aviation and technology, the FTA is designed to give a massive push to manufacturing and services across both countries. It is also projected to generate thousands of new jobs, boost trade volumes, and improve market access for both Indian and British exporters.
A significant win for Indian agriculture is the removal of British tariffs on 95 per cent of agricultural and processed food items, making premium UK markets more accessible to Indian farmers. However, the agreement makes no tariff concessions on dairy, apples, oats, and edible oils to protect Indian farmers’ interests.
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India’s fisheries sector is another beneficiary, especially in states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Previously taxed exports like shrimp, tuna, and fish feed will now enter the UK market without duty, giving a boost to coastal economies.
UK Prime Minister Sir Keir Starmer praised the FTA, calling it "historic" and stating, "Both countries will see a boost in wages and living standards. It will bring down the prices of Indian clothes, shoes, foods for British citizens."