India: trade and investment outlook

By reducing barriers to trade and improving market access, CETA is expected to make doing business between the two countries considerably easier, particularly for SMEs and mid-market businesses looking to expand internationally.

The reduction of tariffs in both directions will create tangible opportunities for businesses seeking to export, import, invest or expand across the UK and India. According to the UK Government, the agreement is expected to increase bilateral trade by £25.5 billion annually in the long term, creating new opportunities for businesses across every region of the UK.

Indian investment into the UK

Indian investment into the UK continues to gather pace. The latest edition of the India Meets Britain Tracker, published annually by Grant Thornton UK in collaboration with the Confederation of Indian Industry (CII) and India Global Forum (IGF), remains a valuable benchmark of the scale and impact of Indian investment in the UK. The report highlights a near 60% year-on-year increase in the number of Indian-owned companies operating here, underlining the growing confidence of Indian businesses in the UK market.

The UK has long been an attractive destination for Indian investors, with significant investment across technology, manufacturing, professional services, pharmaceuticals and clean energy. Companies such as HCLTech, Infosys, TCS and Wipro have established substantial UK operations, while investment continues to grow in advanced manufacturing, life sciences, clean energy and digital infrastructure. Technology, Media and Telecommunications remains the largest sector for Indian-owned businesses in the UK.

Clean energy represents a particularly exciting area for future UK-India collaboration. Indian businesses are investing heavily in renewable energy, energy storage, electric mobility and green hydrogen, creating opportunities for cross-border investment, technology partnerships and project development as both countries pursue ambitious net-zero goals.

This growth is not confined to London and the South East. As highlighted at Yorkshire Business Insider's recent Trading with India event, regions including Yorkshire, the Midlands and the North East are well placed to benefit from deepening UK-India ties, given their industrial strengths, innovation ecosystems and strong Indian diaspora communities. The Midlands continues to attract investment linked to advanced manufacturing and logistics, while Yorkshire and the North are seeing increasing opportunities across manufacturing, technology and clean energy.

The planned trade mission to India in October 2026, involving northern mayors and regional leaders, further demonstrates the growing commitment to strengthening economic links with one of the world's fastest-growing major economies.

How we can help

For businesses looking to enter the Indian market, attract Indian investment or expand existing operations, understanding the legal, regulatory and cultural landscape remains critical.

At Irwin Mitchell, we combine UK legal expertise with a trusted network of contacts across India, including lawyers, accountants, banks and financial institutions, enabling us to provide practical, commercially focused support throughout the investment and growth journey. Coupled with our memberships of business-focused organisations such as the Commonwealth Enterprise and Investment Council (CWEIC), this places us in a strong position to connect UK and Indian businesses, facilitate new opportunities and support international growth.

As trade and investment links between the UK and India continue to strengthen, the opportunities for businesses on both sides have rarely been greater. Organisations considering how an India strategy could support their growth ambitions should now be thinking about how best to position themselves to take advantage of this increasingly dynamic and attractive market.