When the UK and India signed their Free Trade Agreement (FTA) in July, it marked the UK government’s most ambitious bilateral trade deal since exiting the European Union.
The Indian economy, valued at $4.19 trillion in nominal GDP, stands as the world’s fourth largest. This immense market presents significant opportunities for Northern Ireland’s exporters, particularly in sectors such as advanced manufacturing, medical technology, and the thriving whiskey industry. The new UK FTA promises to increase bilateral trade by £25.5 billion annually by 2040 and add £4.8 billion to the UK GDP.
Tariffs on UK exports to India are set to be significantly reduced, making it easier for Northern Irish businesses to access this growing market. These are tangible opportunities that the business community needs to understand, prepare for, and be supported through to maximise our potential. What is more, the news of this trade deal follows the Indian government’s strategic decision to invest in Northern Ireland with the opening of a Consulate.
In March this year, External Affairs Minister S. Jaishankar inaugurated the Indian Consulate in Belfast; only the fourth diplomatic post in Northern Ireland (after the US, China, and Poland). He explicitly tied the move to broadening economic ties in IT, cybersecurity, manufacturing, creative industries, and academia.
This goes beyond deepening diplomatic links: it signals India’s confidence in Northern Ireland as a place to do business. Many sectors stand to benefit from the deal as we see the detail being worked through over the coming months.
With our state-of-the-art Factory of the Future at the Advanced Manufacturing and Innovation Centre opening in Newtownabbey in 2026, and many of the other City & Growth Deal projects well underway, a trade deal with India is a timely boost for our best-in-class manufactured goods. Manufacturers employ around 30% of Northern Ireland’s workforce and they stand to benefit from India slashing tariffs from an average of 15% to just 3% on UK exports. Local firms exporting machinery, electronics, or auto parts now gain access to a huge, growing Indian market.
The success of cutting-edge health and life sciences firms like Almac, Norbrook, Randox and Eakin Healthcare has put Northern Ireland on the map, particularly in the field of medical devices. This is a sector that with the right approach, also presents significant opportunities to scale and grow. Exports of medical devices currently facing duties up to 13.75% will see those tariffs halved or eliminated completely over the next decade if they trade with India. Belfast-based Medtech firms such as Biopanda have already indicated that great opportunities lie ahead for the sector.
Tariffs on whiskey exports to India fall from 150% to 75% immediately, and then gradually to 40%, which is a game-changer for local distillers. The deal also enables flexibility in sourcing and bottling to maximise cheaper entry into India.
With the benefits of having a dedicated diplomatic mission through the Consulate, Northern Irish exporters and Indian importers can coordinate more effectively, helping SMEs to navigate barriers to market entry whether they be regulatory, tax, legal or otherwise. And with around 10,000 Indian diaspora residents in Northern Ireland, relational capital can also be translated into trade and investment.
With the right approach, Northern Ireland is poised to be a standout regional beneficiary of the UK–India trade deal. With a £50 million economic boost projected, the creation of 2,200 jobs, and a new diplomatic foothold in Belfast, the ingredients for success are in play. But the level of that success depends on harnessing momentum by leveraging the Consulate, empowering SMEs, and building cross-jurisdictional collaboration in services, tech, and academia.
NI Chamber has a long-established history in supporting our exporters. The team is supporting members who are now preparing for the FTA to come into effect and stands ready to help super charge its potential.
