Blab Business
UK-India Free Trade Agreement Boosts Manchesters Appeal to Asia-Pacific Manufacturers
The UK‑India Free Trade Agreement (FTA) entered force on 15 July 2026, creating new tariff‑reduction opportunities for advanced machinery and manufacturing goods. Invest Manchester, the inward‑investment agency for Greater Manchester, is positioning the city as the UK’s primary base for Asia‑Pacific (APAC) manufacturers looking to expand into the UK and European markets.
The FTA was negotiated between the UK and India from 2022 and signed on 24 July 2025. The agreement is projected to lift annual UK‑India bilateral trade to £25.5 billion by 2040, up from the £47.9 billion recorded in 2025. India is already the fastest‑growing partner country for Greater Manchester’s service exports, contributing £337 million annually to the local economy.
Manchester is the world’s first industrial city and now the UK’s largest advanced manufacturing and engineering cluster. The region hosts more than 8,000 companies and employs over 115,000 people. It has attracted more international investment than any other UK regional city in the past decade and is the country’s fastest‑growing economy.
"The UK‑India Free Trade Agreement is a significant moment for Greater Manchester," said David Hilton, Director of Investment and Sector Growth at Invest Manchester. "India is already our fastest‑growing partner country for service exports, and the reduction in tariffs on advanced machinery opens up real new opportunities for Indian manufacturers looking to establish a base in the UK. We have the infrastructure, the talent and the partnerships in place to make Manchester the natural first choice."
Manchester offers a talent pool of 7.3 million people within a one‑hour commute and produces approximately 14,000 STEM graduates each year, the largest pipeline of any UK regional city. Operating costs are up to 40 % lower than in London, and the city’s graduate retention rate is the highest outside the capital.
The strengthening UK‑India relationship is already delivering tangible economic benefits. Indian companies have invested more than £1 billion in North West England, supporting over 6,700 jobs. Nearly 540,000 people of Indian origin live across the North of England, creating strong commercial and cultural links between the two markets.
Manchester continues to attract investment from across the APAC region. Japanese firms have invested nearly £118 million in the city over the past 18 months, including commitments from Astemo, Mizkan and Daikin, alongside established businesses such as Hitachi, NGK and Shimadzu. Indian companies such as Tech Mahindra and Hero Cycles have also set up operations in Manchester, and Australian technology company SafetyCulture has chosen the city as its European headquarters.
The city’s international connectivity is a key advantage. Manchester Airport offers direct links to Mumbai, Delhi, Singapore, Hong Kong, Beijing, Phuket and many other global destinations. India generates more than 600,000 annual visits to the UK, with visitor numbers forecast to reach one million by 2030.
Innovation infrastructure further strengthens Manchester’s appeal. More than £300 million has been invested in specialist research centres across the region, and the city hosts Europe’s largest school of materials and over 180 advanced materials companies.
Major developments such as Atom Valley, a 17‑million‑square‑foot advanced manufacturing district expected to create 20,000 high‑value jobs, and MIX Manchester, offering over two million square feet of manufacturing and R&D space adjacent to Manchester Airport, provide businesses with world‑class locations to establish and grow their operations.
As part of its ongoing engagement with the Indian market, a senior Invest Manchester delegation will visit India later this month to strengthen business ties. The visit will include meetings with leading manufacturers, investors, industry associations and government stakeholders to explore new trade, investment and innovation partnerships.
The agency is represented across key APAC markets by the International Advisory Council (IAC), which helps businesses explore and establish operations in Greater Manchester.
The FTA’s entry into force marks a new chapter in UK‑India trade. Manchester’s manufacturing ecosystem, talent base, cost advantage and connectivity position it well to capture the opportunities created by tariff reductions on advanced machinery. The upcoming delegation and continued investment from APAC firms suggest that Manchester will play an increasingly prominent role as a gateway for Asian manufacturers into the UK and wider European markets.
The situation remains dynamic. Investors will monitor how the FTA’s tariff reductions are implemented and how quickly Indian and other APAC manufacturers establish operations in Manchester. The city’s continued investment in infrastructure and research, along with the delegation’s outreach, will shape the pace of new trade and investment flows in the coming months.
The FTA was negotiated between the UK and India from 2022 and signed on 24 July 2025. The agreement is projected to lift annual UK‑India bilateral trade to £25.5 billion by 2040, up from the £47.9 billion recorded in 2025. India is already the fastest‑growing partner country for Greater Manchester’s service exports, contributing £337 million annually to the local economy.
Manchester is the world’s first industrial city and now the UK’s largest advanced manufacturing and engineering cluster. The region hosts more than 8,000 companies and employs over 115,000 people. It has attracted more international investment than any other UK regional city in the past decade and is the country’s fastest‑growing economy.
"The UK‑India Free Trade Agreement is a significant moment for Greater Manchester," said David Hilton, Director of Investment and Sector Growth at Invest Manchester. "India is already our fastest‑growing partner country for service exports, and the reduction in tariffs on advanced machinery opens up real new opportunities for Indian manufacturers looking to establish a base in the UK. We have the infrastructure, the talent and the partnerships in place to make Manchester the natural first choice."
Manchester offers a talent pool of 7.3 million people within a one‑hour commute and produces approximately 14,000 STEM graduates each year, the largest pipeline of any UK regional city. Operating costs are up to 40 % lower than in London, and the city’s graduate retention rate is the highest outside the capital.
The strengthening UK‑India relationship is already delivering tangible economic benefits. Indian companies have invested more than £1 billion in North West England, supporting over 6,700 jobs. Nearly 540,000 people of Indian origin live across the North of England, creating strong commercial and cultural links between the two markets.
Manchester continues to attract investment from across the APAC region. Japanese firms have invested nearly £118 million in the city over the past 18 months, including commitments from Astemo, Mizkan and Daikin, alongside established businesses such as Hitachi, NGK and Shimadzu. Indian companies such as Tech Mahindra and Hero Cycles have also set up operations in Manchester, and Australian technology company SafetyCulture has chosen the city as its European headquarters.
The city’s international connectivity is a key advantage. Manchester Airport offers direct links to Mumbai, Delhi, Singapore, Hong Kong, Beijing, Phuket and many other global destinations. India generates more than 600,000 annual visits to the UK, with visitor numbers forecast to reach one million by 2030.
Innovation infrastructure further strengthens Manchester’s appeal. More than £300 million has been invested in specialist research centres across the region, and the city hosts Europe’s largest school of materials and over 180 advanced materials companies.
Major developments such as Atom Valley, a 17‑million‑square‑foot advanced manufacturing district expected to create 20,000 high‑value jobs, and MIX Manchester, offering over two million square feet of manufacturing and R&D space adjacent to Manchester Airport, provide businesses with world‑class locations to establish and grow their operations.
As part of its ongoing engagement with the Indian market, a senior Invest Manchester delegation will visit India later this month to strengthen business ties. The visit will include meetings with leading manufacturers, investors, industry associations and government stakeholders to explore new trade, investment and innovation partnerships.
The agency is represented across key APAC markets by the International Advisory Council (IAC), which helps businesses explore and establish operations in Greater Manchester.
The FTA’s entry into force marks a new chapter in UK‑India trade. Manchester’s manufacturing ecosystem, talent base, cost advantage and connectivity position it well to capture the opportunities created by tariff reductions on advanced machinery. The upcoming delegation and continued investment from APAC firms suggest that Manchester will play an increasingly prominent role as a gateway for Asian manufacturers into the UK and wider European markets.
The situation remains dynamic. Investors will monitor how the FTA’s tariff reductions are implemented and how quickly Indian and other APAC manufacturers establish operations in Manchester. The city’s continued investment in infrastructure and research, along with the delegation’s outreach, will shape the pace of new trade and investment flows in the coming months.
