Two key features of the agreement, to take effect from July 15, will be the elimination of tariffs in certain sectors as well as technology transfers. With this, Indian renewable energy companies are expected to scale up production and export their products globally.

Speaking to The Secretariat, Tushar Gupta, Vice President, Servotech Renewable Power System, said that beyond just increasing trade, the agreement is expected to bring a massive flow of capital and critical technology transfers into India, particularly in the green hydrogen and battery energy storage sectors.

“We are expecting around US$ 250 billion of investment in India. Currently, India relies heavily on imports of core battery storage components, specifically advanced cells and Battery Management Systems (BMS), from other Asian countries. The technology transfers built into this FTA will change that, allowing India to manufacture these components locally,” he said.

Ultimately, this deal is expected to help India transition from a major importer of green technology into a global manufacturing and export hub for the clean energy transition.

The FTA focusses heavily on promoting cross-border technology collaboration, zero-duty exports, and major infrastructure investments.

UK’s Expertise In Green Finance

Hanish Gupta, Founder & Managing Director, Sunkind India, said the UK specialises in green finance and climate-focused investments. If the FTA encourages greater participation from UK investors and institutions in India's renewable energy ecosystem, it can help unlock capital for large-scale solar and clean energy projects in India.

“The most significant structural barrier for renewable energy developers in India today is access to affordable capital. Financing costs here remain substantially higher than those available in Western markets, a differential that directly affects tariff competitiveness, project timelines, and investment decisions,” he added.

Referring to the Comprehensive Economic and Trade Agreement (CETA) between India and UK, he said, “If it creates clear pathways for UK institutional investors and development finance institutions to participate in India's energy markets, analysts project this could increase UK participation in India's renewable auctions by up to 40% over the next five years.”

Building Structural Resilience

Gupta said that for green manufacturing and supply chains, the FTA opens a strategic conversation that India’s green energy sector urgently needs.

“Our Production-Linked Incentive (PLI) scheme has established significant domestic module and solar cell manufacturing capacity, but upstream production, particularly polysilicon and wafers, remains exposed. When China tightened export controls on critical minerals in 2025, the risks of this dependency became sharper. UK collaboration in advanced materials, manufacturing technology, and clean energy R&D can help India build a supply chain that is not just cost-competitive but structurally resilient,” he said.

Benefits Of A Bilateral Deal

The agreement will mark the operationalisation of the first bilateral trade deal between India and a European country. The earlier deal with the European Free Trade Association (EFTA) that came into effect last year was with a multilateral organisation comprising four countries: Switzerland, Norway, Iceland, and Liechtenstein.

According to British estimates, the deal is set to boost the Indian gross domestic product by around £5.1 billion annually, while boosting the UK’s GDP by around £4.8 billion. In the long run, it could increase bilateral trade by around £25.5 billion annually.