A Revitalised Strategic Partnership
The new partnership between India UK FTA will open up a world of opportunities for entrepreneurs. The Prime Ministers from India and the UK signed the India UK FTA Vision 2035 in July 2025. This affirmed a commitment to “unlock the full potential of a revitalised partnership”. The recently concluded free trade agreement (CETA) is a key component. It aims to increase bilateral trade from $56 billion to $100 billion in 2030.
This agreement will eliminate tariffs for many labour-intensive products, such as leather, footwear, and clothing, unlocking new opportunities estimated at $23 billion. India’s exports are increasing to the UK (up 12.6% in FY2024-25 to $14.5 billion), and Vision 2035 promises regular high-level review to promote growth in trade and investment.
The India-UK Partnership is focused on “growth and employment”, and creates a dynamic environment for new startups to flourish in sectors that are supported by the government and have global demand.
Export Growth: A Stepping Stone for Startups
The Export Growth of the Past and Future Targets
Indian exports are at record levels, paving the way for further gains. India’s total exports, including goods and services, reached an all-time high of $824.9 billion (up 6.0% on a year-on-year basis) according to government data. The services exports accounted for a large part of the increase, with a total value of $387.5 billion (+13.6%), and non-petroleum goods exports reached $374.1 billion.
These numbers highlight the wide range of manufacturing and service industries in India. Industry bodies such as the Federation of Indian Export Organisations (FIEO) project that exports will surpass $1 trillion in FY2025-26, fueled largely by strong growth in electronics and engineering goods.
India has set itself ambitious export goals. The new Foreign Trade Policy (FTP 2023) and schemes such as Make-in-India aim to increase manufacturing output and exports. The Commerce Ministry reports, for example, note that strategically selected incentives (like Production Linked Incentives), have already boosted production by over Rs13 lakh cr and exports by about Rs4.5 lakh cr (roughly 50 billion dollars).
The UK trade agreement and other FTAs, in line with Vision 2035, will multiply these gains for Indian startups by opening global markets. India is well on its way to achieving new export milestones, a trend which startups can take advantage of.
High-Growth Industries and Market Forecasts
Technology and Electronics
Government incentives are boosting the electronics manufacturing industry. India’s phone manufacturing jumped from 5.8 crore units in 2014-15 to 33 crore by 2023-24. Mobile device exports reached $15.6 billion during this period.
The Indian semiconductor market will grow by 18% (CAGR) from $38 billion to $105 Billion by 2030, mainly due to 5G, digitalization, and AI. Startups working in chip design and IoT will benefit from this, particularly as Vision 2035 calls on UK-India R&D for telecom, quantum computing, and AI.
Clean Tech and Renewable Energy
India’s clean tech and renewable energy market is booming and growing fast. By Oct 2024, the renewable energy capacity had surpassed 203 GW (46 % of total power) and was on its way to 500 GW of non-fossil targets by 2030. The solar PV, wind and hydro power installations are rapidly growing, attracting investment and creating jobs.
In India, for example, the renewable energy sector employs more than 1 million people. The UK-India Climate Partnerships (green finance and clean energy R&D), will also boost demand. Solar, wind turbines and battery storage (EV Batteries, advanced chemistry cell) startups, as well as climate tech, have a huge domestic market forecast.
Automotive and Electric Vehicles (EVs)
India’s automotive and electric vehicles (EVs), a major growth driver, is a growing industry. The government’s PLI scheme (Rs20.750 crore or $3.5 billion) for advanced automotive technology attracted 115 applications and $8.15 billion in investment. The EV sector is expected to grow explosively.
India’s EV growth is expected to reach over 50% CAGR in 2030 as automakers switch to electric cars, buses, and two-wheelers. Demand for EV batteries and power electronics will increase. The UK’s collaboration with green technology and the easier access to British suppliers will help EV startups grow internationally.
Pharmaceuticals and Biotech
India is the global leader for generic drugs and vaccines. India is ranked third in the world by volume, and exports around 50% of its pharmaceutical output. Over the past decade, pharmaceutical exports have almost doubled from $15.07 billion in 2013-14 to a projected $27.85 billion in 2023-24.
UK-India partnership in medical devices and biotech research allows startups in biotech and drug manufacturing to target both the domestic market and also the UK. The Vision’s focus in health and life science indicates that it supports innovation.
Textiles, Leather, and Agro Processing
Textiles and Leather Processing, as well as Agriculture Processing, are still vibrant sectors. Tariff-free access will be granted to textiles, leather, and apparel, which are labor-intensive exports. This could unlock significant trade opportunities (about $23 Billion).
Duty-free access to India’s staples, including spices (turmeric and pepper), fruits (mango, pickles, mango pulp), pulses, seafood (shrimp, tuna), and pulses will be available in the UK. The duty-free access will boost Indian agricultural exports over 20% within three years. New businesses in the food processing, agritech, textile/apparel, and apparel manufacturing sectors have an enormous market to tap both domestically and internationally.
Manufacturing Market Forecast
Market research indicates that all of these sectors will grow strongly. Industry analysts, for example, estimate India’s total manufacturing market to be $329.4 billion in 2024 and $711.4 billion by 2034. (CAGR of 8.2%). The “Make in India Reforms” are driving this expansion. In Budget 2022-23, the government allotted Rs 760 billion ($9.7 billion) to PLI schemes in electronics and semiconductors.
These trends, along with India’s large middle-class population and growing urban demand, ensure a fast-rising market and large sizes for entrepreneurs.
Export Promotion and Government Support
Production Linked Incentive Schemes (PLIs)
These schemes, with a combined expenditure of Rs 1,97 lakh crore (US$24 billion), provide incentives to manufacturers in 14 key sectors (electronics and pharmaceuticals, textiles and automotive, etc.). To boost exports and output. By Oct 2024, PLI-funded projects will have generated Rs13 lakh crore of production and Rs 1.47 lakh billion in investment, while creating 0.95 million jobs.
Exports in PLI-affected sectors have already exceeded Rs 4 lakh crore. Incentives in electronics have turned India into a net exporter for mobile phones. The auto PLI has attracted $8.15 billion in auto component investment. These schemes provide financial support for startups and create a better manufacturing environment.
Logistics and Ease-of-Doing-Business
The government’s National Logistics Policy and PM GatiShakti plan are reducing costs and improving supply chains, making it easier to manufacture and export.
The National Single Window System (NSWS), for example, streamlines hundreds of approvals and the Trade Connect platform connects over 6 lakh Indian Exporters with missions overseas. These reforms, along with GST simplifications and reduced compliance, help new businesses run smoothly.
Digital Trade Platforms
Initiatives are pushing India to the digital export economy. An E-Commerce Export hub aims to increase India’s online sales to $100 billion in 2030. This will empower SMEs and artisans worldwide. The government’s support for eGovernment (customs modernization and electronic TPs), which enables global trade participation, also increases.
Global Market Access and Foreign Trade Agreements
India’s international partnerships are expanding market access. Recent deals with the UAE and Australia, as well as the European Free Trade Association, are expanding India’s market reach.
The UK deal, for example, locks in foreign investment regulations (e.g. Businesses can be assured of their future with the help of the Vision 2035 framework. Vision 2035 ensures that regular ministerial discussions on technology, trade and finance are held, so startups should expect an ongoing alignment of policy.
Startup Support Measures
Startups need government support, from tax incentives to trade facilitation. Tax breaks, credit support for MSMEs (like Rs20,000 crores export credit line) and clusters or export hubs are available to new entrants.
Districts as Export hubs, for example, identify and connect local strengths with global buyers. Together, the India-UK Partnership and policy support amplify market opportunities for new industrial ventures.
Feasibility Studies by Experts for New Ventures
A detailed plan is necessary before launching any manufacturing or industrial startup. Specialized consultancies can help. Niir Project Consultancy Services, for example, provides detailed techno-economic feasibility and market surveys tailored to different industries.
These NPCS reports cover the manufacturing process, raw materials requirements, plant layout and financial projections of a proposed venture. An NPCS report can help entrepreneurs assess the viability of a product or plant, as well as its production costs and market demand.
This kind of guidance is essential when you enter complex industries like electronics, food processing, or chemicals. In summary, companies like NPCS assist startups in evaluating and planning projects comprehensively. They turn high-level business opportunities into actionable plans.
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FAQs
Q: Why is it important for new businesses to understand India-UK Vision 2030?
A: India-UK Vision 2035, a strategic road map agreed by both governments in July 2025. The collaboration is intensified in areas such as trade, education, technology and climate change. It means easier access to markets and stronger economic ties for startups. It supports the new free trade pact, which has targets like $100 billion in trade by 2030. A business that is launched today will benefit from the growing demand for bilateral products, the joint R&D program, and the streamlined regulations within the next decade.
Q: What are the benefits of the new India-UK FTA for entrepreneurs?
A: The Comprehensive Economic and Trade Agreement between India and the UK (CETA) removes tariffs from most exports and secures market access. This means cheaper UK sales for entrepreneurs and cheaper UK inputs.
India, for example, now enjoys tariff-free entry to the UK on textiles, apparel, leather goods, and many agrifood products. New mobility and IP regulations benefit digital startups and services. The FTA, which aims to reduce trade barriers to $100B in trade by 2030 and to double trade, creates a more stable and predictable market for both small and medium businesses.
Q: What sectors provide the most market opportunities to startups in this partnership?
A: A few sectors stand out. Electronics and tech is growing (e.g. Domestic semiconductor and mobile phone production is expected to reach $105 billion by 2030. India is also accelerating its solar, wind, and battery capacity to reach its 500 GW goal. The Indian EV market is expected to grow at a CAGR of 50%.
Exports of biotech and pharmaceuticals are booming. India is the third-largest producer. Textiles, apparel, agroprocessing, and other traditional industries have improved export access to UK with duty-free textile, spice, and fruit exports.
General, new ventures can find large markets in high-value manufacturing products (electronics and machinery, chemicals, garments, leather and handicrafts), backed up by PLI schemes from the government and export incentives.
Q: What kind of support does the Government of India offer to startups in these sectors?
A: The government provides multiple support mechanisms. The PLI scheme, for example, provides financial incentives to produce specific goods (electronics and pharmaceuticals as well as textiles). This encourages exports and investments. The government has lowered operating costs by easing business norms, such as a single-window clearance and fewer compliances.
Export promotion schemes, such as credit insurance and sops under Foreign Trade Policy (FTP), help Indian companies reach international markets. Grants and tech and startup programs, such as Startup India, may be available for innovative projects. The government’s overall policy is aligned with the Vision 2035 goals and aims to scale up manufacturing for new firms.
Q: What are the best ways to evaluate a startup manufacturing idea in such an environment?
A: A detailed market or feasibility report is a good first step. NPCS publishes, for example, techno-economic feasibility reports that cover all aspects of a project, including manufacturing process flow, raw materials sourcing, layout of the plant, equipment requirements, and financial projections.
You can calculate the costs and revenue of different scenarios by studying a report on your sector. Combining this information with market research, such as recent government statistics on export growth and demand, will allow you to assess the size and viability of an opportunity. To summarize, use expert research (such as NPCS reports), along with official statistics (from press releases from government and industry bodies) ,in order to create a business plan.
Which business to start? How to choose a business idea?
Sources
We rely on official Government of India reports and industry reports for our data and analyses. India’s Commerce Ministry reports on export figures, and PIB releases highlight key policies and accomplishments. These sources guarantee that the information is accurate and reflects India’s goals, market size and policy initiatives for 2025.
