Airbus and Rolls-Royce Secure £5 Billion Deal to Supply Aircraft and Engines to Indian Airlines Following India-UK FTA

Airbus and Rolls-Royce have landed major contracts worth nearly £5 billion to supply aircraft and engines to Indian airlines, marking one of the first significant commercial outcomes from the historic India-UK Free Trade Agreement (FTA) signed on July 24, 2025. Airbus, the European aviation giant headquartered in France, along with the iconic British engine manufacturer Rolls-Royce, will deliver cutting-edge aircraft and Trent XWB engines to modernize India’s rapidly expanding aviation sector while sustaining thousands of UK manufacturing jobs.

Prime Minister Narendra Modi hailed the FTA as a landmark deal that will reduce the "cost of doing business" and boost investor confidence between the two major economies, strengthening their global economic partnership. The agreement—which cuts average tariffs on British goods entering India from 15% to 3%—has already paved the way for 26 British companies, including India-headquartered carbon capture firm Carbon Clean and medical technology innovator Occuity, to secure lucrative deals and investment plans in India.

This aerospace partnership is expected to enhance connectivity in India, supporting the country’s ambitions to expand its commercial aviation infrastructure. Rolls-Royce’s advanced engines powering Airbus aircraft will ensure efficiency and sustainability in Indian airlines’ fleets. The deal underscores the FTA’s broader role in facilitating strategic industrial cooperation and technology exchange.

The India-UK FTA also extends wide-ranging benefits beyond aviation—opening duty-free access to Indian farmers for agricultural and processed food products, including spices, turmeric, and seafood, while protecting sensitive UK agricultural interests. British Prime Minister Keir Starmer described the pact as “historic,” emphasizing its positive impact on wages, living standards, and consumer prices, particularly on products like clothing and footwear.

This comprehensive trade agreement marks a critical step toward doubling bilateral trade to USD 120 billion by 2030 and creating tens of thousands of jobs in both countries. It fortifies economic ties in aerospace, clean technology, medical devices, agriculture, and beyond—strengthening the foundation for sustained growth in India and the UK.

Also read: 'The Greatest Luxury Is...'- Chanel Global CEO Leena Nair Extrapolates