September 28, 2026 | Corporate & CommercialThe India–UK trade deal is creating new opportunities that go beyond traditional trade in goods and services. From government procurement and advanced manufacturing to technology, healthcare and clean energy, businesses can explore new avenues for collaboration. Joint ventures and strategic partnerships can further help Indian and UK companies combine capabilities and access new markets.
The India–UK Comprehensive Economic and Trade Agreement (CETA), which entered into force on 15 July 2026, is opening a broader range of opportunities for businesses in both countries. While tariff reductions and improved market access have received significant attention, the agreement also creates opportunities that go beyond conventional trade in goods and services.
For Indian businesses, two areas are particularly relevant: access to government procurement opportunities in the UK and greater scope for cross-border joint ventures and strategic partnerships.
These opportunities could be especially relevant for Indian companies looking to expand internationally, access advanced technologies, enter new supply chains or build a presence in the UK and wider global markets.
Government procurement represents a significant commercial market in both India and the UK. Under CETA, covered government procurement opportunities are subject to legally established commitments designed to provide eligible businesses from both countries with greater access to specified contracts.
The agreement's Government Procurement Chapter provides UK businesses with guaranteed access to certain Indian government procurement opportunities covered by India's schedule. It also provides mechanisms for access to information on covered Indian tenders through India's designated electronic portal.
For businesses, this creates an opportunity to look beyond conventional private-sector customers and consider government contracts as part of an international expansion strategy.
The potential scope extends across both goods and services, including areas such as:
Engineering and technical services
Infrastructure and related solutions
Technology and digital services
Education and professional services
Manufacturing and industrial supplies
Other sectors covered by the respective procurement commitments
Before CETA, meeting the eligibility criteria for these contracts was difficult, and many stayed with domestic suppliers. The agreement makes it far easier for foreign firms to bid.
Simpler discovery. Tenders can be viewed through a single online portal, which also sets out how to bid.
Lower payment risk. With a government as the customer, payment is effectively guaranteed. That makes public contracts an attractive first step for companies entering a new market.
Range and volume. The variety of tenders, by size and sector, gives businesses of many types a way in.
For an Indian company considering entry into the UK, government procurement can therefore become one potential route for developing an initial commercial presence without necessarily requiring a large standalone investment in the market.
However, businesses should assess the relevant procurement schedules, eligibility requirements, tender conditions and local regulatory requirements on a contract-by-contract basis.
The significance of CETA also extends to how Indian and UK companies can work together.
Rather than simply increasing exports from one market to another, the agreement can support business models based on technology partnerships, manufacturing collaborations, joint ventures, research and development, supply-chain integration and market expansion.
The opportunities are particularly interesting where the respective strengths of Indian and UK businesses are complementary.
Advanced manufacturing and aerospace stand out as areas where collaboration can combine UK technology, engineering capabilities and specialised expertise with India's manufacturing scale, talent base and expanding industrial ecosystem.
Potential areas of collaboration include:
Aerospace components
Precision engineering
Advanced manufacturing technologies
Industrial automation
Specialised machinery and equipment
Aerospace supply-chain development
For Indian manufacturers, partnerships with UK companies could provide access to specialised technologies and capabilities. For UK businesses, Indian manufacturing capabilities can provide a potential platform for scaling production and developing supply-chain capacity.
The UK Government has specifically identified advanced manufacturing as a priority sector under its India trade strategy.
India's technology ecosystem and the UK's strengths in technology, financial services and innovation create another significant area for collaboration.
Potential opportunities include:
Artificial intelligence
Software and digital platforms
Cybersecurity
Enterprise technology
Digital services
Technology-led business solutions
Research and innovation partnerships
The CETA includes provisions relating to digital trade and innovation, while the broader India–UK partnership identifies critical and emerging technologies, including AI, semiconductors, quantum technologies, advanced materials and cybersecurity, as areas for deeper cooperation.
For Indian technology companies, this could create opportunities to collaborate with UK businesses to access customers, technologies and international markets. UK companies, meanwhile, can potentially leverage India's technology talent and delivery capabilities.
Life sciences and healthcare offer another natural area for cross-border collaboration.
The combination of UK capabilities in pharmaceuticals, medical technology, diagnostics and research with India's manufacturing, research, healthcare and pharmaceutical ecosystem can support partnerships across multiple stages of the value chain.
Potential areas include:
Pharmaceuticals
Medical devices
Diagnostics
Biotechnology
Healthcare technology
Research and development
Manufacturing and supply-chain partnerships
The India–UK Vision 2035 also identifies health and life sciences as a priority area for collaboration, including biotechnology, biomanufacturing, medical technologies and digital health.
Clean energy is another sector where the two markets offer complementary capabilities.
Potential areas include:
Solar and wind technologies
Green hydrogen
Battery and energy-storage solutions
Clean energy engineering
Carbon-related technologies
Energy-transition technologies
Clean transport
India's expanding renewable-energy market and manufacturing capacity can create opportunities for UK companies with specialised technologies, engineering capabilities or intellectual property.
At the same time, Indian companies with manufacturing, project-development or execution capabilities may find opportunities to partner with UK businesses seeking to scale clean-energy technologies.
The two governments have also identified renewable energy, hydrogen, energy storage, batteries and carbon capture among areas for deeper cooperation.
Financial services provide another important avenue for collaboration.
The CETA contains a dedicated Financial Services Chapter intended to support the ability of UK companies to provide financial services in India, alongside commitments aimed at continued cooperation between the two markets.
This can support opportunities involving:
Financial technology
Investment and capital markets
Insurance
Banking-related services
Fintech
Professional and business services
For Indian businesses expanding into the UK, the depth of the UK's financial and professional services ecosystem can also support wider international expansion strategies.
For Indian companies, the opportunity is therefore broader than simply exporting more products to the UK.
Businesses can consider several possible routes:
Export → Partnership → Joint Venture → UK Market Entry → Global Expansion
A company may begin by supplying products or services to the UK, subsequently identify a local partner, establish a joint venture or strategic collaboration, and eventually use the UK as a platform for accessing additional international markets.
Similarly, an Indian manufacturer may partner with a UK technology company to combine technology and intellectual property with India's manufacturing capabilities.
The appropriate structure will depend on the sector, business objectives, regulatory requirements, investment considerations and the capabilities of the potential partners.
CETA provides the framework, but businesses will need to translate that framework into specific commercial opportunities.
For Indian companies, this could involve:
Identifying UK companies seeking Indian manufacturing or market-entry partners
Exploring UK technologies suitable for Indian commercialisation
Monitoring relevant UK government procurement opportunities
Identifying opportunities for contract manufacturing or technology transfer
Evaluating potential JV or strategic partnership structures
Using the UK as a potential gateway to wider international markets
For UK businesses, India can similarly provide opportunities for manufacturing partnerships, market access, technology commercialisation and participation in India's expanding industrial and services ecosystem.
The agreement therefore creates an environment in which trade, investment, technology and strategic partnerships can increasingly operate together.
The implementation of CETA marks an important shift in the India–UK economic relationship. The agreement has opened new channels for market access, while the wider bilateral partnership is also focusing on innovation, technology, clean energy, healthcare, financial services, advanced manufacturing and other growth sectors.
For businesses, the key question is no longer simply “What can we export?”
It is increasingly:
“Who can we partner with, what can we build together, and which market can we reach next?”
Our legal and advisory teams advise on cross-border structuring, joint ventures and transactions, and can help you assess opportunities under CETA and prepare for them. To discuss your plans, get in touch with our team.
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