The UK–India deal: a closer partnership for business
After three years of talks, two of the world's biggest economies have agreed a trade deal. For UK businesses already working with Indian partners, it adds confidence. For others, it is a reason to look.
By the Xuru Technologies team · 8 May 2025
Key takeaways
- On 6 May 2025 the UK and India announced the conclusion of a free trade agreement.
- Alongside it, a Double Contributions Convention addresses dual social security payments for temporary workers.
- The deal cuts tariffs on many goods and includes commitments on services and business mobility.
- It signals a long-term partnership, supporting confidence in UK–India technology and services relationships.
British companies have worked with Indian technology teams for decades. A formal trade agreement doesn't change how good a partner is — but it strengthens the relationship between the two economies.
What happened
As Mayer Brown and the Institute of South Asian Studies summarised, the agreement reduces tariffs on a wide range of goods traded between the two countries and covers services and investment. The Double Contributions Convention aims to stop employers and workers paying social security in both countries for temporary assignments.
What it means for UK businesses
- Confidence for partnerships. Government-level agreement supports long-term commercial relationships.
- Services remain the big opportunity. Design, development, data and support work cross borders digitally.
- Choose partners carefully. Clear contracts, data protection terms and accountable contacts matter more than any treaty.
- Exporters to India may find new opportunities as tariffs fall over time.
Working well with an Indian technology partner
| Area | Good practice |
|---|---|
| Scope | Written proposal, milestones and acceptance criteria |
| Data | UK GDPR-compliant terms for any personal data |
| Communication | Agreed overlap hours and one point of contact |
| Quality | Preview links, testing and sign-off at each stage |
Read our buyer's guide to outsourcing to India.
Frequently asked questions
Does the trade deal affect hiring an Indian web agency?
Digital services were already widely traded. The deal mainly strengthens the overall relationship and confidence; your contract and partner choice remain what matter most.
When does the agreement take effect?
Concluding talks is followed by legal checks, signing and ratification, so different provisions take effect later.
Is UK data safe with an Indian partner?
With proper contracts, security practices and UK GDPR transfer safeguards, yes. Ask partners how they protect data.
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