This article covers the economic relationship between India and the United Kingdom, including trade figures, the India-UK Comprehensive Economic and Trade Agreement (CETA) and investment in each direction. It also covers cooperation in science and innovation, health, and climate and clean energy. It is based on the Ministry of External Affairs (MEA) bilateral brief of July 2026, and figures are given for the periods the brief states.

Bilateral trade

According to the MEA brief of July 2026, which cites DBT, UK as its source, India-UK bilateral trade in goods and services stood at £47.9 billion in the four quarters to the end of Q4 2025. This was an increase of 10.0% or £4.3 billion, in current prices, from the same period in 2024.

In that period, India's total imports from the UK amounted to £19.3 billion and India's total exports to £28.7 billion. India was the UK's 11th largest trading partner, accounting for 2.5% of the UK's total trade.

Comprehensive Economic and Trade Agreement (CETA)

The CETA entered into force on 15 July 2026. The brief states that it provides duty-free access to 99 per cent of India's exports to the UK, and to 91 % of the UK's exports, covering nearly 100% of the trade value.

The goods covered include labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys, as well as sectors such as engineering goods, chemicals and auto components. The agreement also includes a package on services covering:

  • Information Technology and IT enabled services
  • financial and professional services
  • business consulting
  • education
  • telecom
  • architecture and engineering

The brief states that bilateral trade has already reached USD 56 billion, with a target to double this by 2030.

Rules of origin, mobility and social security

Apart from tariff elimination, the CETA provides for simplified Rules of Origin and boosts Services and Professional Mobility. It also introduces a Double Contribution Convention (DCC), which exempts Indian workers and their employers from paying UK social security contributions for up to three years when the workers are on temporary assignments.

According to the brief, around 75,000 workers and over 900 companies are expected to benefit from the DCC, with savings of more than INR 4,000 crore.

Investment

The brief gives the following investment figures:

  • There are 971 Indian companies operating in the UK, with combined revenues of almost £68 billion.
  • The UK is the 6th largest inward investor in India and invested US$ 35.28 billion in FDI inflows between April 2000 and September 2024.
  • There are 667 British companies in India, with a combined turnover of approximately INR 5082 billion.
  • Total outward FDI to the UK was $19 billion till March 2024.
  • Indian companies in the UK employ over 1.7 lakh people in the UK, and UK companies in India employ over 5 lakh people.

Science and innovation

The India-UK Science and Innovation Council (SIC), held once every two years and chaired by Ministers from both sides, works to develop the relationship in science, technology and innovation. The brief states that in the past few years the UK has emerged as India's second largest international research and innovation partner, with a joint research programme to the tune of £300-400 million.

Health

The brief describes India-UK cooperation in mitigating the effects of the COVID-19 pandemic as significant. It cites the joint research and development of the COVID-19 vaccine, under a licensing agreement between UK-based AstraZeneca and Serum Institute of India, as an unprecedented example of India-UK cooperation on global issues.

Health agreements recorded in the brief include:

  • the "India-UK Framework agreement for collaboration on health care workforce", signed in New Delhi in July 2022 to support the recruitment and training of Nurses, Allied Health Professionals and other categories of healthcare professionals identified by both sides
  • a Memorandum of Understanding on Health and Life Sciences, signed in January 2025
  • a Letter of Intent (LoI) between ICMR and NIHR, United Kingdom on Health Research, signed during Prime Minister Starmer's visit to India

Climate and clean energy

India and the UK cooperate on climate and clean energy through initiatives such as the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure, One Sun One World One Grid (OSOWOG), the Road Transport Breakthrough and the Zero Emission Vehicle Transition Council (ZEVTC).

During Prime Minister Starmer's visit to India in October 2025, the two sides announced the 'India-UK Climate Finance Initiative', intended to enable the scaling up of climate finance and to open green growth and new investment opportunities for both countries. A new joint investment in the Climate Tech Start-up Fund and the establishment of an Offshore Wind Taskforce were also announced during the visit.