Beyond London: Why the India-UK Trade Deal Must Connect Regional Economies

by Dr. Jasneet Bedi

AI Generated Summary

  • The North of England’s upcoming trade mission to India offers an opportunity to redefine bilateral economic engagement, shifting the focus from national capitals to regional industries, universities and emerging centres of innovation.
  • The upcoming visit of a high-level delegation from the North of England to India, scheduled for October 12–16, represents an important step in this direction.
  • Can the India-UK economic partnership evolve from a relationship primarily between two national economies into a network of direct connections between their regions, industries and communities.

The North of England’s upcoming trade mission to India offers an opportunity to redefine bilateral economic engagement, shifting the focus from national capitals to regional industries, universities and emerging centres of innovation.

For decades, the economic relationship between India and the United Kingdom has largely been viewed through the prism of London and New Delhi. Trade negotiations, investment announcements and diplomatic engagements have traditionally revolved around these two capitals. Yet, as the countries enter a new phase of commercial cooperation, the real potential of their partnership may lie considerably beyond their political and financial centres.

The upcoming visit of a high-level delegation from the North of England to India, scheduled for October 12–16, represents an important step in this direction. Bringing together political leaders, businesses, universities and regional institutions, the mission reflects a growing recognition that international trade must deliver tangible benefits to local economies.

More importantly, it raises a broader question: Can the India-UK economic partnership evolve from a relationship primarily between two national economies into a network of direct connections between their regions, industries and communities?

The timing is significant. The UK-India Comprehensive Economic and Trade Agreement, which came into effect on July 15, has created fresh expectations for bilateral commerce. With trade between the countries reaching £47.9 billion in 2025 and projections suggesting that the agreement could increase annual bilateral trade by £25.5 billion by 2040, both governments have considerable economic incentives to translate diplomatic progress into commercial activity.

However, trade agreements do not automatically generate investment, employment or industrial growth. Their effectiveness depends on whether businesses, educational institutions and regional administrations can identify opportunities and convert them into enduring partnerships.

This is precisely where the North of England’s initiative becomes relevant.

The delegation, operating under the Great North banner, brings together representatives from Liverpool City Region, West Yorkshire, South Yorkshire, York and North Yorkshire, the North East, and Cheshire and Warrington. Rather than approaching India as individual cities competing for attention, these regions are seeking to present a coordinated economic proposition.

Such cooperation is particularly important in an increasingly competitive global investment environment. International investors frequently assess destinations according to the strength of their industrial ecosystems, research capabilities, workforce availability and infrastructure. A collective regional approach can offer a more compelling proposition than fragmented promotional efforts.

For the United Kingdom, the initiative also addresses a longstanding domestic challenge: ensuring that the benefits of international trade extend beyond London and the South East.

Northern England possesses substantial strengths in advanced manufacturing, engineering, technology, higher education, clean energy and creative industries. Yet international perceptions of Britain’s economy often remain disproportionately associated with its capital.

The India mission offers an opportunity to challenge that imbalance by positioning northern cities and industrial clusters as destinations for Indian investment and collaboration.

Yorkshire’s participation illustrates this ambition particularly well.

The mayors of West Yorkshire, South Yorkshire, and York and North Yorkshire are undertaking a coordinated programme covering New Delhi, Hyderabad and Mumbai. Their engagement seeks to build on existing cultural familiarity while expanding cooperation into technology, manufacturing, education and other knowledge-intensive sectors.

Cricket has historically provided Yorkshire with considerable recognition in India. But cultural familiarity, while valuable, cannot substitute for modern commercial relationships. The more consequential opportunities lie in connecting Indian businesses with Yorkshire’s industrial capabilities, research institutions and emerging innovation ecosystems.

The University of York’s planned Mumbai campus is an example of how these relationships can extend beyond conventional trade. Educational partnerships can facilitate student mobility, joint research, skills development and institutional cooperation, creating connections that may eventually support business investment and technological collaboration.

For India, the strategic value of such engagement deserves equal attention.

India’s economic relationship with Britain need not be limited to attracting investment from London-based corporations or securing access to the British consumer market. Its companies can also benefit from establishing direct relationships with regional industrial clusters, universities and local administrations.

This approach is particularly relevant for Indian states seeking to strengthen exports, attract technology partnerships and diversify international investment.

Punjab and Haryana provide an instructive example.

Although Chandigarh does not feature in the forthcoming delegation’s announced itinerary, the region has previously participated in British efforts to strengthen economic engagement outside the traditional metropolitan centres.

Earlier Northern Powerhouse initiatives included engagement with Punjab, Karnataka and Delhi. British diplomatic representatives in Chandigarh subsequently highlighted progress in education, skills development and exchanges involving students and businesses.

These precedents demonstrate that regional cooperation is neither an entirely new concept nor an untested diplomatic ambition. What has changed is the wider economic framework within which such partnerships can now develop.

A stakeholder consultation organised by India’s Ministry of Commerce and Industry in Chandigarh in June highlighted opportunities arising from India’s expanding network of free trade agreements. Among the sectors identified as having export potential for Punjab and Haryana were textiles, apparel, engineering goods, agriculture, food processing, pharmaceuticals and chemicals.

Several of these industries align with the capabilities and commercial interests of northern England.

For example, Punjab’s manufacturing enterprises could explore partnerships involving specialised engineering, industrial technology and advanced production systems. Textile businesses could examine opportunities for technology transfer, product development and access to new distribution networks. Universities and technical institutions could collaborate on vocational education, research and industry-oriented skills programmes.

Clean energy and sustainable industrial development offer another promising area of cooperation, particularly as businesses in both countries respond to changing environmental requirements and the transition towards lower-carbon production.

Such opportunities need not depend entirely on large multinational corporations. Small and medium-sized enterprises, which form an important part of both economies, could benefit substantially from regional business networks that reduce the difficulties of identifying reliable overseas partners.

Nevertheless, meaningful cooperation requires more than promotional visits.

One of the persistent weaknesses of international trade missions is the tendency to evaluate their success through the number of meetings held, memoranda signed or investment intentions announced. While these activities may establish useful foundations, they do not necessarily translate into commercial outcomes.

A more credible measure of success would examine how many companies subsequently establish operations, how many export contracts materialise, whether research partnerships produce tangible results and how many jobs are created.

Regional administrations on both sides should therefore consider developing mechanisms for sustained engagement after the October visit. These could include sector-specific business exchanges, university-industry partnerships, investment facilitation channels and structured follow-up programmes connecting businesses with prospective collaborators.

India’s diplomatic presence in Manchester could play an important enabling role in this process. The establishment of the Indian consulate there reflects New Delhi’s recognition that Britain’s northern regions merit more direct institutional engagement.

It also provides a potential bridge between Indian state governments, industry associations and northern English authorities.

For Indian policymakers, there is a wider lesson. As the country negotiates and implements trade agreements with major economies, states and industrial regions must become more active participants in international economic diplomacy.

National agreements establish the rules and opportunities for commerce, but regional institutions are often better positioned to understand the specific requirements of local industries.

Punjab’s exporters, Haryana’s manufacturers, Maharashtra’s technology companies and Telangana’s innovation ecosystem will not necessarily pursue identical international opportunities. A more decentralised approach can help match their respective strengths with suitable overseas partners.

The same principle applies to Britain. Liverpool, Yorkshire and the North East have different economic specialisations, and their engagement with India will be most productive when built around complementary capabilities rather than generic investment promotion.

Ultimately, the significance of the Great North mission extends beyond its immediate commercial agenda.

It represents an opportunity to rethink how two major economies engage with one another in an era when regional competitiveness, industrial innovation and institutional networks increasingly determine the distribution of economic gains.

The India-UK trade agreement may provide the enabling framework, but its lasting value will depend on what businesses, universities and local communities build within it.

If the October delegation succeeds in establishing durable partnerships, it could help demonstrate that the next chapter of India-UK relations will not be written exclusively in London and New Delhi.

It may instead take shape in the factories of Yorkshire, the research laboratories of Manchester, the industrial corridors of Haryana, the enterprises of Punjab and the technology centres of Hyderabad.

The real promise of the India-UK trade partnership lies not simply in expanding trade between two countries, but in connecting the economic strengths of their regions.

Dr. Jasneet Bedi

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