The UK and India Today

How the UK and India's economic relationship has changed, including the 2025 trade agreement, Indian investment in Britain and migration, and a recap of the module.

The UK and India have a close, and changing, economic relationship.

Indian investment in the UK

Tata owns Jaguar Land Rover and major steel operations at Port Talbot.
Indian firms are among the largest foreign investors in the UK.
Many Indian IT companies operate there.

Trade agreement

In July 2025, India and the UK signed a Comprehensive Economic and Trade Agreement:

Cutting tariffs on most Indian exports like textiles, leather and jewellery.
Lowering Indian tariffs on Scotch whisky and cars in stages.
A social security arrangement avoiding double contributions for temporary workers.

People

The Indian diaspora is one of the largest ethnic groups in the UK.
Indians became a leading group of skilled visa recipients and international students.

Module recap

Britain was the first industrial nation.
The Bank of England began in 1694 and became independent in 1997.
Empire shaped trade with India; Naoroji described the drain.
The welfare state and NHS followed Beveridge.
The 1970s brought crisis and an IMF loan.
Thatcher privatised and deregulated.
The City is a global financial hub.
Productivity has stagnated since 2008.
Brexit added trade barriers.
The 2022 mini-budget sparked a market crisis.
Regional gaps are large.

The whisky tariff

Under the 2025 deal, India's tariff on Scotch whisky falls from 150 percent in stages, while Indian garments enter the UK duty-free.

Thinking the UK-India relationship is only historical

Trade, investment and migration ties are growing today.

Key takeaways

Indian firms like Tata are major UK investors.
India and the UK signed a trade agreement in July 2025.
Indians are leading skilled migrants and students in the UK.
The relationship has shifted from colonial to partnership.