Airbus, Rolls Royce Secure £5 Billion Deal with Indian Airlines Following India-UK Free Trade Agreement

In a landmark move strengthening economic ties between India and the UK, aviation major Airbus and engineering powerhouse Rolls Royce have secured contracts worth nearly £5 billion to supply aircraft and engines to Indian airlines. The agreement was announced shortly after India and the UK signed a comprehensive Free Trade Agreement (FTA) in London earlier today.

The deal was part of a broader economic partnership between the two nations, involving 26 UK-based companies expanding or investing in India and 18 Indian firms confirming fresh investments in the UK.

Key Highlights:

• Airbus and Rolls Royce to deliver aircraft and engines to Indian carriers in deals totalling £5 billion.
• PM Narendra Modi and UK PM Sir Keir Starmer signed the India-UK Free Trade Agreement during Modi’s visit to London.
• The trade deal aims to reduce the “cost and increase the confidence of doing business” between the two countries.

Major UK Firms Expanding into India:

• Carbon Clean, a carbon capture firm originally founded in India, will invest £7.6 million to set up an office in Mumbai.
• Occuity, a UK-based medtech firm, signed a £74.3 million export deal with Indian company Remidio Innovative Solutions.
• Johnson Matthey, a specialty chemicals firm, will invest £4 million in India, supporting up to 20,000 jobs.
• Marcus Evans Group, a global events and intelligence company, will open a new Mumbai office with a £69 million export/investment pipeline.

Indian Investments in the UK:

• DCube AI, a Kerala-based artificial intelligence company, will invest £5 million in Manchester and London.
• LTIMindtree, a leading IT services provider, will inject £1 million into its London operations, creating 300+ jobs.
• Aurionpro, a tech firm focused on banking and cybersecurity, plans to invest £20 million, generating 150+ jobs in the UK.

Sector-Wide Impact of the Trade Deal:

The FTA goes beyond corporate investments, also providing substantial benefits to Indian farmers and fishers:

• The agreement eliminates British tariffs on 95% of Indian agricultural and processed food exports, opening lucrative markets for goods such as turmeric, pepper, cardamom, mango pulp, pickles, and pulses.
• Indian seafood exports like shrimp and tuna, and related feeds from coastal states including Andhra Pradesh, Kerala, and Tamil Nadu, will now enjoy duty-free access to UK markets.

However, no tariff relief has been granted for UK dairy, oats, apples, and edible oils to safeguard Indian farmers.

Statements from Leaders:

• Prime Minister Narendra Modi called the FTA “historic,” stating,
• “This deal will lower the cost of doing business, enhance investor confidence, and strengthen two of the world’s major economies.”
• UK Prime Minister Sir Keir Starmer echoed the sentiment, adding,
• “This will raise wages, improve living standards, and lower prices for British consumers on Indian clothes, shoes, and food.”

This agreement marks a significant milestone in India-UK relations and is expected to generate tens of thousands of jobs while unlocking trade potential across sectors ranging from aerospace and AI to agriculture and seafood.