India-UK Vision 2035

The India UK FTA Vision 2035 lays out a roadmap for deepening and diversifying bilateral cooperation in trade, technology, and education. The Vision, which is anchored in a Comprehensive Strategic Partnership (CSP), highlights mutual commitments to sustainable growth, creating jobs, and leading the world in light of rapid technological and environmental change.
This evolving partnership offers entrepreneurs and startups in the manufacturing and industrial sectors the opportunity to earn millions of dollars by 2025. It is driven by export targets and sectoral market growth as well as policy support from both sides.

India’s Export Achievements and Targets

Record Merchandise Exports

India’s merchandise imports exceeded the US$400 billion target set by the Ministry of Commerce and Industry in FY 2021-22.
In FY 2022-23, non-petroleum exports and those that do not include gems and jewellery grew from US$315.64 to US$320.23 billion despite global headwinds.
These figures reflect India’s resilience in exporting and indicate attractive prospects for startups, particularly those who are involved in manufacturing segments like textiles, engineering products, and chemicals.

Bilateral Trade Growth

The bilateral trade in goods and services between India and the UK has increased from less than US$30 billion (in 2013) to almost US$60 billion (by 2024).
With the ratification of the Comprehensive Economic and Trade Agreement (CETA) and ongoing Free Trade Agreement negotiations, this trajectory is set to accelerate–potentially doubling over the next five years.
This is a warning to entrepreneurs that they should orient their product design, standards of quality, and supply chain towards the UK market’s needs.

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Sectoral Market Size Opportunities in 2025

1. Renewable Energy and Clean Technology

Market Size and Forecast

Solar modules, wind turbines, and energy storage system components are in high demand as the UK strives to reach 70% renewable electricity by 2030.
India’s National Green Hydrogen Mission aims to produce 5 million tonnes of clean hydrogen by 2030. This would represent a market opportunity of US$8-10 billion in electrolyzers and related systems between 2025-2027. (Govt. of India, Ministry of New and Renewable Energy Annual Report, 2023-24).

Startup Insights

• Component Manufacturing: Precision cast for turbine blades and polymer films for solar panels.

• Energy Storage: Battery assembly and recycling capability.

• Green Hydrogen: Small electrolysis units for industrial clusters.

2. Advanced Materials and Critical Minerals

Market Size and Forecast

The global semiconductor materials market is expected to reach US$80 billion in 2025. India and the UK will collaborate on niche markets such as photoresist substrates and specialty gases.
Both governments are focusing on secure sourcing and processing of critical minerals (lithium, Cobalt).

Startup Insights

• Material Synthesis: nano-coated powders as electrodes.

• Recycling Technologies: Urban Mining of Electronic Waste for Precious Metals

• Supply Chain Solutions: Blockchain-enabled traceability of conflict-free minerals.

3. Life Sciences and Pharma Intermediates

Market Size and Forecast

India’s pharmaceutical trade was valued at US$25 billion in FY2023-24. The UK accounted for US$2 billion of that amount (Govt. of India, Ministry of Commerce & Industry, Annual Report 2023-24).
The global specialty chemical market is projected to reach US$940 billion by 2025. This represents a growth rate of 5.2% CAGR (Government of India, Ministry of Chemicals & Fertilisers, Annual Report 2022-23).

Startup Insights

• API Intermediates: Synthesis of high-purity pharmaceutical intermediates to UK GMP standards.

• Biotech Tools: Customized consumables and reagents for diagnostics and genomics.

• Contract Manufacturing: High-value, small-batch manufacturing services for niche therapies.

4. Digital Manufacturing and Industry 4.0

Market Size and Forecast

India’s digital manufacturing industry is expected to reach US$70 billion by 2025. This market will be driven by IoT integration and robotics (NITI Aayog annual report 2022-23).
The UK Industrial Strategy focuses on investing PS900 million in advanced manufacturing research until 2027.

Startup Insights

• Retrofitting legacy machines with IoT sensors, cloud analytics and other smart technologies.

• Additive Manufacturing: Metal 3-D printing services for rapid prototypes and small-batch manufacturing.

• Digital twins: Platforms for simulation and process optimization, such as in the automotive and aeronautical sectors.

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The Strategic Pillars of Startup Success

Trade Agreements: Enhanced Access to Markets

Once fully ratified, the India-UK CETA will reduce tariffs and nontariff barriers to goods and services. This will benefit sectors like textiles, leather, and engineering goods. Startups should consider:

• Map Tariff Lines – Identify the product categories that will be given preferential access.

• Comply Early: Align your quality certification (ISO and CE marking) with UK standards.

• Joint platforms: Attend JETCO (Joint Economic and Trade Committee) events to explore and network.

Collaboration in Technology and Research

India and the UK are jointly funding R&D for AI, quantum computing, and semiconductors under Vision 2035’s Technology Security Initiative. The following are some of the opportunities:

• Consortia formation: pooling resources with UK Universities for grant proposals.

• IP Frameworks: How to structure co-development agreements so that patents are protected in both jurisdictions.

• Pilot Projects: Deploying prototyping in UK testbeds to develop smart manufacturing and urban solutions

Climate Finance and Green Growth

Climate Partnership: aims to mobilize US$50 billion in climate finance before 2035. Early windows for green bonds and blended finance as well as public-private partnerships are available. Startups can:

• Green Energy Projects – Secure funding to bridge the viability gap for solar or wind farm projects

• ESG Advisory Services – Offers compliance and reporting assistance to ESG-inclined investors.

• Circular Economy Solutions: Develop waste-to-value processes eligible for green incentives.

Actionable Insights for Entrepreneurs

Market Research & Forecasting

• For granular data on exports and growth rates by sector, consult the Ministry of Commerce Annual Reports.

• Use trade databases (DGFT, WTO statistics, and WTO EXIM) to track changes in tariffs under CETA.

Feasibility and Techno-Economic Evaluations

• Align business model with Vision 2035’s pillars – green growth, advanced materials, and life sciences.

• Identify niche gaps in the UK value chain.

Partnerships & Funding

• To co-finance the pilot and scaling-up phases, explore UK Innovate grants and British International Investment Facilities.

Regulatory & Certification Compliance

• Expect UK REACH for chemical exports, CE/UKCA certification for industrial equipment, and UK GMP guidelines.

Which business to start? How to choose a business idea?

 

FAQs

Q1: What are the export targets between India and the UK under Vision 2035

The Vision aims to double bilateral trade from approximately US$60 billion in 2024 to US$120 billion by 2035 through tariff reductions and enhanced service cooperation.

Q2: What sectors will have the greatest startup potential by 2025?

The key sectors are renewable energy, advanced materials, pharmaceutical intermediates and digital manufacturing. Each of these is backed by strategic initiative and expected to grow at a rate of 10-15% per year over the next five.

Q3: What are the UK climate finance opportunities for startups?

Startups can take advantage of the UK-India Development Capital Investment Partnership and British International Investment’s blended finance facility to leverage loans at concessionary rates and equity investment for green projects.

Q4: Which government reports should entrepreneurs consult to get the latest information?

• Export achievements in the Ministry of Commerce & Industry’s Annual Report for 2022-23.

• Ministry of Commerce & Industry annual report 2023-24 sectoral performance.

• Ministry of Chemicals & Fertilisers’ Annual Report for 2022-23 data on specialty chemicals.

• Annual Report of the Ministry of New & Renewable Energy 2023-24. Green hydrogen forecasts.

Q5: What support does NPCS offer entrepreneurs in evaluating these opportunities and opportunities?

NPCS produces Market Surveys-cum-Detailed Technoeconomic Feasibility Reports that cover manufacturing processes, raw materials, plant layouts and financial projections. They help entrepreneurs evaluate the feasibility of setting up new industries or expanding current operations in order to take advantage of India-UK Vision 2035.

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About Niir Project Consultancy Services

Niir Project Consultancy Services is a specialist in preparing detailed techno-economic feasibility reports. The reports contain comprehensive information on manufacturing processes, raw materials, plant layout and financial projections. NPCS helps entrepreneurs assess the feasibility of establishing new industries or expanding their operations. This ensures informed decision-making on million-dollar projects.
Aligning themselves with the strategic pillars in India-UK Vision 2035 allows startups to tap into robust export frameworks and R&D collaborations as well as significant climate finance pools. Act now to ensure your place in this transformational partnership. The year 2025 is a key juncture.

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.