As the UK-India Free Trade Agreement comes into force, Invest Manchester, the inward investment agency for Greater Manchester, is positioning Manchester as the UK’s premier destination for Asia-Pacific manufacturers seeking to expand into the UK and European markets.
The landmark agreement, which came into force on 15 July 2026, is projected to increase annual UK-India bilateral trade by £25.5 billion by 2040. With tariff reductions on advanced machinery and manufacturing-related goods, the agreement presents new opportunities for APAC manufacturers, with Manchester offering a strategic location from which to capitalise on this growing trade relationship.
The world’s first industrial city, Manchester is now the UK’s largest advanced manufacturing and engineering cluster, home to more than 8,000 companies and over 115,000 employees. Having attracted more international investment than any other UK regional city over the past decade, Manchester also boasts the UK’s fastest-growing economy.
David Hilton, Director of Investment and Sector Growth at Invest Manchester, said: “The UK-India Free Trade Agreement is a significant moment for Greater 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 businesses access to one of the UK’s strongest talent and innovation ecosystems. With the highest graduate retention rate outside London, operating costs up to 40% lower than the capital, and a labour pool of 7.3 million people within a one-hour commute, the city produces approximately 14,000 STEM graduates each year, the largest pipeline of any UK regional city.
The strengthening UK-India relationship is already delivering tangible economic benefits. Total UK-India trade reached £47.9 billion in 2025, an increase of 10% on the previous year, while India has become Greater Manchester’s fastest-growing partner country for service exports, contributing £337 million annually to the local economy.
Indian companies have invested more than £1 billion in North West England, supporting over 6,700 jobs, while 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 Asia-Pacific region. Japanese companies have invested nearly £118 million in the city over the past 18 months, including major commitments from Astemo, Mizkan and Daikin, joining established businesses such as Hitachi, NGK and Shimadzu. Indian companies including Tech Mahindra and Hero Cycles have also established operations in Manchester, alongside Australian technology company SafetyCulture, which has selected the city as its European headquarters.
The city is exceptionally well connected internationally through Manchester Airport, with direct links to Mumbai, Delhi, Singapore, Hong Kong, Beijing, Phuket and many other global destinations. India continues to be an increasingly important market for the UK, with more than 600,000 annual visits and visitor numbers forecast to reach one million by 2030.
Manchester’s innovation ecosystem further strengthens its appeal for international manufacturers. More than £300 million has been invested in specialist research centres across the region, while the city is home to Europe’s largest school of materials and over 180 advanced materials companies.
Major developments including 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 between India and Greater Manchester. The visit will include meetings with leading manufacturers, investors, industry associations and government stakeholders to explore new trade, investment and innovation partnerships. Across key APAC markets, the agency is represented by the International Advisory Council (IAC), helping businesses explore and establish operations in Greater Manchester.
