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Overview
India is undertaking one of the world’s largest energy transitions. Rapid economic growth, rising energy demand and ambitious government targets for renewable power – backed by targeted budgetary allocations – are creating significant opportunities for UK exporters.
The UK-India Free Trade Agreement (FTA), also known as the UK‑India Comprehensive Economic and Trade Agreement (CETA), is now in force and supports UK clean energy firms by improving market access, reducing tariff and administrative barriers, and increasing the predictability of moving people for business. This makes it easier for UK companies to enter and scale in India’s clean energy and low-carbon sectors.
UK energy companies have shown growing interest in India, as a growing market for renewable energy solutions – including on energy storage technologies, grid innovation, and green hydrogen.
As of 2026:
- India has set a target of 500 gigawatts (GW) of renewable energy capacity by 2030, including major expansion of solar, wind, and green hydrogen. It has achieved approximately 50% of the target (at 271.9 GW as of January 2026) – signalling substantial remaining market potential.
- Significant investment is flowing into smart grids, energy storage, offshore wind, hydrogen production, and grid modernisation.
- Demand is growing for international expertise, especially in offshore wind, assessments and project development, advanced energy storage technologies, engineering services, grid integration, advanced solar technologies and cleantech innovation.
For UK exporters, this means opportunities across generation, transmission, storage, low‑carbon fuels and clean‑energy services.
Trade agreement with India
The FTA entered into force on 15 July 2026. It strengthens the trading relationship between the two countries and provides a clearer, more predictable framework for UK companies exporting to India.
Under the agreement:
- tariffs are reduced or removed on many clean energy products
- digital trade becomes simpler and more secure
- electronic transactions are recognised in law
- temporary movement of businesspersons is easier and more transparent
- intellectual property protections are strengthened
For the clean energy sector, this means better market access, lower costs for equipment and improved confidence in delivering energy projects across India.
Sector and market opportunities
There are significant opportunities for UK clean energy exporters in solar power, offshore wind, energy storage, hydrogen and grid modernisation – as India accelerates investment in low-carbon technologies and energy infrastructure.
Examples of key opportunities
Low-carbon hydrogen and CCUS
India aims to produce 5 million tonnes of green hydrogen annually by 2030 under the National Green Hydrogen Mission and is supported by financial incentives worth 19,744 crore Indian rupees (INR) (approximately £1.9 billion) to support domestic electrolyser manufacturing and scale hydrogen production. While the upstream development is progressing, the downstream hydrogen uses across industrial sectors and supporting infrastructure like storage and, transportation remain underdeveloped, creating gaps across the value chain.
Additionally, in its Union Budget for financial year 2026, the government of India has earmarked 20,000 crore INR (approximately £2 billion) over the next 5 years to advance carbon capture, utilisation and storage (CCUS) technologies.
Opportunities in low-carbon hydrogen and CCUS include:
- electrolyser manufacturing
- supply chain and workforce training
- hydrogen infrastructure (storage and pipeline)
- hydrogen transport and obility
- CCUS technologies for decarbonisation
For more information on green hydrogen, see the National Green Hydrogen Mission page on the website of India’s Ministry of New and Renewable Energy.
Grid modernisation and energy storage
India’s electrical network is undergoing a transformative shift with a strong government push towards smart metering, renewable energy integration and grid modernisation.
India’s 2030 renewable energy targets also significantly increase the need for both short- and long-duration energy storage (LDES). The Indian government projects 47GW of energy storage by 2030, and backs battery energy storage systems (BESS) through approximately £80 million viability gap funding.
Opportunities in the sector include:
- smart grid and advanced metering systems
- battery storage solutions for grid balancing
- digital solutions for grid forecasting and optimisation
- advanced energy storage technologies
- high-voltage direct current (HVDC), power electronics and grid-stability technologies
For more information on power networks, see India’s Ministry of Power website.
For more information on energy storage, see the energy storage section on the website of India’s Ministry of New and Renewable Energy.
Offshore wind and marine energy
The offshore wind sector represents an emerging sector within India and is witnessing a gradual progress. The government has recently taken a proactive step by establishing a joint UK-India offshore wind taskforce dedicated to addressing policy, financial and stakeholder concerns to drive early-stage market growth.
Opportunities in the sector include:
- industry building
- seabed mapping, design and engineering
- turbine components and specialist vessels
- supply chain services and workforce training
- environmental assessment and project certification
- manufacturing innovation and component testing
- Socio-economic impact assessment
For more information on offshore wind, see the offshore wind page on the website of India’s Ministry of New and Renewable Energy.
Solar and renewable generation
India’s solar sector reached a significant installed capacity of 144GW in 2026 and is one of the world’s fastest growing clean-energy markets. The sector is driven through ambitious targets, budgetary allocations and schemes such as the PM Surya Ghar, and Production Linked Incentive Scheme (PLI). Although a mature market, the sector continues to offer opportunities to international companies across utility scale projects and advanced technologies.
Opportunities in the sector include:
- utility‑scale and rooftop solar technologies
- floating solar engineering and design services
- advanced inverters, trackers and control systems
- operations and maintenance (O&M), asset optimisation and digital solar management tools
For more information on solar, see the solar section on the website of India’s Ministry of New and Renewable Energy.
Tariff‑free clean energy products
The UK’s expertise in offshore wind and green finance will greatly benefit as tariff reductions have been secured on 98% of listed products classified as environmental goods, and 91.8% being fully liberalised, like in wind power generation, hydro and tidal power generation and energy storage. Thus, many UK clean energy goods now enter India at reduced or zero tariffs under the FTA, depending on their HS code classification and rules of origin:
- A significant number of renewable‑energy components, electrical equipment and environmental technologies benefit from tariff elimination once origin requirements are met.
- Where products are on a tariff‑reduction schedule, rates decrease over a defined phase‑out period.
- Exporters must ensure their goods meet rules of origin criteria to claim preferential rates.
- Businesses should confirm the correct HS code for their product to identify the specific preferential tariff that applies.
This improved tariff environment supports UK competitiveness in India for products and services such as grid equipment and modernisation, energy storage and low carbon hydrogen technologies, renewable or clean energy advisory services and offshore wind systems.
Find out more in our guide: Tariffs and customs for imports from and exports to India
Opportunities for government procurement
The FTA gives UK businesses guaranteed access to the Indian government procurement market while also ensuring that government procurement processes in both countries are conducted in a fair, open, and transparent manner.
UK businesses will be able to compete for clean energy procurements, for the majority of central government entities in India, as well as for several of India’s federal state-owned enterprises at thresholds lower than ever before.
In addition, UK companies will be treated as a class II supplier if at least 20% of their product or service is from the UK – granting them the same status that only Indian firms currently enjoy.
UK companies entering the Indian market can leverage a range of tender portals for clean energy procurement opportunities:
Opportunities for innovation
The agreement creates a clear opportunity for businesses by supporting innovation by fostering opportunities in innovation-intensive industries and encouraging trade in innovative products.
The Innovation Working Group will mutually identify areas of cooperation to promote and facilitate innovation across diverse sectors and technologies. Examples of areas of cooperation may include the commercial application of new technologies in economic sectors like clean energy and emerging and transformative technologies, including clean and low emissions technologies.
Opportunities for digital trading
Electronic contracts
The agreement ensures that electronic contracts are legally valid and cannot be considered invalid just because they are in electronic form.
However, India might impose specific criteria regarding electronic contracts, including some circumstances where they are not accepted. You should check local regulations for more information.
Electronic authentication and trust services
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions (and the people behind them) are genuine. The agreement ensures that electronic authentication and trust services, such as electronic signatures and time stamps are considered legally valid. Strengthening the legal validity of electronic trust services provides greater confidence that transactions can be concluded through electronic means.
However, India might impose specific criteria regarding electronic trust services and authentication, including some circumstances where they are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements. The agreement also encourages mutual recognition of trust services, which supports smoother cross-border digital interactions in the future.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and India have committed to accept trade documents in electronic form, where possible, and to treat them as legally equivalent to paper versions. There may be some exceptions, and you should check local regulations for more information.
The UK and India have also committed, where possible, to making trade administration documents available in electronic form.
Safer trading online for your business
Online consumer protection
The agreement recognises the importance of strong and transparent consumer protection measures to guard against misleading, deceptive, fraudulent or unfair practices in digital trade.
Under the agreement, the UK and India have committed to maintaining effective consumer protection laws for online transactions, including rules that prohibit harmful commercial practices.
Protected source code
The UK and India have agreed that businesses are not required to give access to – or transfer – source code (including algorithms embedded in it), except in specific legal and regulatory circumstances.
Easier business travel
For UK exporters and service providers, the benefits of the agreement go beyond tariff reductions. The agreement creates a predictable and transparent framework for business mobility, which is critical for sectors where face-to-face engagement matters. For example:
- Clean energy component manufacturers and exporters can attend trade fairs, meet distributors, and negotiate contracts without worrying about visa delays.
- Professional service providers such as engineers, and energy specialists can deliver projects onsite, ensuring quality and compliance.
- Clean energy consultancy firms can provide advisory services under clear rules, strengthening trust with Indian clients.
By reducing administrative barriers and clarifying eligibility, the agreement helps UK businesses compete effectively in India’s dynamic market.
Under the FTA, both governments have committed to facilitating the temporary movement of business persons. This means UK professionals can expect:
- faster and more predictable visa processing
- clear definitions of permitted activities
- longer stays for certain categories of business travellers
- legal certainty and transparency
These changes give UK companies confidence to plan visits, deploy staff, and deliver projects without unnecessary disruption.
Find out more in our guide: Travelling to India for work.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access webinars on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate.
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures.
Check import duties and allows you to check the status of available tariff rate quotas.
You can get further information about the trade opportunities, sector potential and details about trade events through our Clean Energy campaign page.
Useful resources
Prior to export, you must be aware of local regulations and import conditions in India that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer, or distributor, you can use the following contacts:
To see a range of official Indian government portals on for procurement opportunities, policy insights, and market access see our guide: Government procurement opportunities in India.
Legal disclaimer
This document is provided as an information guide only and should not be relied on as a substitute for your own research or independent advice.
No investment and/or business decision should be made solely on the basis of information presented in this document. It is recommended that an independent due diligence investigation is conducted before entering into engagement with any individual, business or other organisation mentioned.
The Department for Business and Trade accepts no responsibility for any loss or damage caused to any person as result of any error, omission, inaccurate or misleading statement in this document.
The accuracy, completeness or timeliness of the content of any website mentioned in this document is not guaranteed in any way, implied or explicit.
