The signing of the India-UK Comprehensive Economic and Trade Agreement (CETA), marks  a pivotal moment in the economic relationship between India and UK. Beyond reducing barriers to trade, the agreement is expected to accelerate cross-border investment, strengthen supply-chain integration and deepen long-term commercial engagement between the two economies. With CETA granting zero-duty access to 99% of Indian exports, and infrastructure projects such as the India-Middle East-Europe Economic Corridor, the  bilateral trade is set to increase up to USD 100 billion by 2030. 

While CETA officially comes into force from July 15 and Rules of Origin already notified, businesses are now moving from anticipation to execution.

Building of an Investment Corridor

Although CETA is focused around trade liberalisation, legal practitioners expect the most immediate effect emerging from the increase in cross border transactions and investments. 

Debopam Dutta1, Partner & Head – India Desk at Trowers & Hamlin, talks about how the firm does not have a domestic India practice, but they regularly advise Indian corporates, family offices and financial institutions investing into the UK, the GCC and beyond. Dutta expects that most immediate demand for legal work will arise in banking and finance, cross-border M&A, infrastructure and project finance, and private capital. The increased trade flows will drive financing transactions, structured investments, and refinancing of existing assets, especially where Indian sponsors are expanding globally or UK investors are seeking exposure to India-linked opportunities.

Even though legal services remain outside the formal scope of the CETA, the agreement will generate substantial legal work as businesses increasingly require support in structuring cross border investments and transactions. 

Infrastructure at the centre of the opportunity

Tariff cuts achieved through agreement will open the door for various sectors but infrastructure determines whether the opportunity can be fully realised . Ports, logistics networks, energy systems and transport corridors  turn a trade agreement into real volume and this is where the India-UK trade story gets more interesting. Clean energy and advanced manufacturing remain priority areas for collaboration, which points to real capital going into power infrastructure, industrial capacity, and the physical systems needed to move goods at scale.

India’s continued investment in transport networks, urban infrastructure, renewable energy, urban development and industrial corridors has created one of the world’s strongest infrastructure pipelines. Combined with the UK’s strengths in project finance, institutional investment and engineering collaboration, the agreement is expected to strengthen long-term collaborations across infrastructure, clean energy, advanced manufacturing and technology-led sectors between  both countries.

For large infrastructure companies , this agreement represents an opportunity to build upon an already established global presence while adopting governance practices that meet international expectations.

Aditi Chavan, Senior Legal Counsel at Larsen & Toubro, says that the significance of the FTA extends well beyond tariff liberalisation. She believes that as commercial engagement between India and the UK increases, businesses will have greater expectations around ESG, energy transition and long-term infrastructure capital, supply-chain management, data protection and transparency.

Her view is that these factors are no longer viewed through  a compliance lens; they increasingly influence commercial decisions, project bankability, access to capital and the ability to capital and the  ability to participate in complex international procurement and infrastructure programmes. 

Governance as a Strategic Advantage

As companies prepare for increased cross-border activity, legal departments are becoming central to strategic decision-making. Ms.Aditi states that, “Indian Infrastructure organisations are placing greater emphasis on integrating governance, compliance and risk-management considerations into cross-border transactions and projects. Given the scale and complexity of infrastructure projects, such an integrated approach is essential for effective execution and risk management.

Drawing upon her experience advising on cross-border infrastructure projects and transactions ,  Ms.Aditi2 adds  “Governance in Infrastructure businesses operating  across multiple jurisdictions has evolved from a risk-management function into a strategic enabler of growth. Increasingly, international stakeholders evaluate a company’s governance standards as closely as its technical and commercial capabilities. The India–UK FTA is expected to further promote the adoption of global best practices, creating new opportunities for investment, partnerships and cross-border business. Organisations that have in the past and can continue to demonstrate disciplined decision-making, robust risk controls and transparent project oversight are often better positioned to secure capital, win mandates and develop enduring international partnerships. Legal teams therefore play a critical role in structuring projects that are both commercially viable and legally resilient.” “

In her view, cross-border transactions become more sophisticated, legal teams will increasingly play a strategic role in aligning commercial objectives, regulatory requirements and stakeholder expectations across jurisdictions.

Navigating Two Regulatory Systems

While the India–UK FTA promises to make trade and investment more seamless, businesses entering either market must still navigate distinct legal and regulatory environments. Both Indian corporates and international law firms agree that understanding these differences early is essential to ensuring successful cross-border transactions.

Dutta1 emphasizes that one of the most significant distinctions lies in the regulatory architecture of the two jurisdictions. “From a cross-border perspective, one of the most significant differences is the regulatory complexity and approval-driven framework in India, particularly around foreign investment rules, exchange control (FEMA), and sectoral caps. This contrasts with the UK’s generally more liberal and predictable regulatory environment.” He also mentions important differences in execution and enforcement. “The UK benefits from well-established processes, documentation standardisation and efficient dispute resolution. In India, while the legal framework is robust, timelines, enforcement and procedural nuances require careful navigation and local expertise.”

From a financing perspective, structuring transactions also requires different considerations across the two jurisdictions.“Structuring considerations differ materially, especially in financing and investment transactions, where issues such as security creation, priority and insolvency frameworks must be analysed closely in India compared to the UK’s more lender-friendly regime.”

Ms. Aditi2 believes that foreign investors often misunderstand the nature of regulatory complexity in India, she further quotes  “While the business environment has become significantly more streamlined, infrastructure projects continue to involve sector-specific regulations, state-level approvals, environmental clearances and multiple stakeholder interfaces, making local context critical to successful execution.”

She also believes that regulatory complexity is frequently mistaken for weak governance.  In reality, large Indian corporates  including infrastructure companies operate with governance, compliance and risk-management frameworks that are closely aligned with global standards and regularly manage international financing, global supply chains and multi-jurisdictional contracts.Transparent engagement on regulatory approvals, project risks and governance expectations at the outset can significantly improve execution outcomes and reduce transactional friction. 

The Expanding Role of In-House Legal Teams

As transactions become increasingly sophisticated, the role of in-house legal teams continues to evolve .

Ms. Aditi on this point opines that, “In cross-border transactions, the internal legal team acts as the central coordinator, ensuring that external counsel in different jurisdictions work towards the same commercial objective. While Indian and international counsel provide jurisdiction-specific advice, it is the in-house legal team that maintains an overall view of the transaction and aligns legal strategy with business goals..”

Interestingly, Ms.Aditi observes that legal issues themselves are rarely the primary source of delays. “In my experience, coordination challenges rarely arise from legal issues themselves. More often, they stem from differing assumptions about the commercial objectives of the transaction. Advisors naturally focus on their respective jurisdictions, and without in-house legal teams’ continuous alignment, on issues such as risk allocation, transaction timelines, liability provisions or regulatory approvals can become disconnected from the broader business intent.”

For this reason, she believes that “The most successful transactions are those where the in-house legal team, Indian counsel and international counsel operate as a single integrated team, with open communication, clear ownership and a shared understanding of the desired outcome.”

Cross-border Legal advisory in  the India–UK Corridor

Dutta believes that many International law firms feel that despite legal services being excluded from the FTA, they can effectively access the Indian market by acting as international legal counsel, combined with strong relationships with leading Indian law firms. This collaboration includes advising on English law financing documents, offshore holding structures, and acting for international lenders and sponsors investing into India, while coordinating closely with Indian firms on domestic law issues. Many businesses undertaking cross-border transactions require coordinated advice across multiple jurisdictions,  often involving both domestic and international legal counsel. 

As investment flows become more international, this ability to coordinate across jurisdictions is expected to become an increasingly valuable differentiator.

Sectors Expected to Drive the Next Wave of Legal Work

While infrastructure is expected to remain one of the biggest beneficiaries of the agreement, both Indian businesses and international advisers believe opportunities will extend across several sectors. The most complex and high-value legal work over the next three to five years is expected to arise from infrastructure and energy, including renewables, driven by capital-intensive projects and cross-border financing, technology and digital infrastructure, including data centres, fintech and AI-related investments, Pharmaceuticals and life sciences, particularly where Indian manufacturers partner with UK or global companies, Manufacturing and supply-chain diversification, as businesses continue to reposition operations globally, Private credit and alternative financing, supporting Indian corporates seeking access to international liquidity.

From a banking and finance perspective, the International law firms can expect these sectors to generate substantial demand for structured finance, project finance and hybrid capital solutions. From Industry perspective, similar opportunities are expected to emerge  across infrastructure, clean energy, advanced manufacturing, technology and engineering services, supported by evolving governance and compliance standards.

Lessons for Businesses Entering the India–UK Corridor

As businesses prepare to expand under the new trade framework, both Ms. Aditi 2 and Dutta1 emphasise that long-term success will depend as much on preparation and relationships between  Indian and UK based organisations,  as also on legal documentation.

Dutta even mentions that Indian organisations entering the UK should focus on governance and structuring from the outset. The UK market places significant emphasis on transparency, regulatory compliance and lender expectations around documentation and reporting. Getting the structure right at the outset from a financing and tax perspective is critical. For UK organisations entering India, preparation requires a different focus. “Invest time in understanding the regulatory landscape and local execution realities. Partnering with the right local advisors and being flexible in deal structuring is essential. India offers significant opportunity, but success depends on patience, preparation and local insight, particularly in regulated sectors.”

From the perspective of Indian organisations entering the UK market and UK organisations investing in India  Ms.Aditi 2 believes that the most important lesson extends beyond legal frameworks. The biggest lesson for both Indian companies entering the UK and UK investors entering India is that successful cross-border transactions are built on understanding and trust, not just legal documentation. She advises Indian organisations to invest time in understanding the UK’s governance expectations, regulatory environment and business culture, while encouraging UK investors to appreciate India’s scale, diversity and dynamic regulatory landscape. “The most successful partnerships are those where both sides engage with transparency, align expectations early and view the relationship as a long-term collaboration rather than a one-time transaction. As the India–UK corridor continues to evolve, businesses that combine patience, adaptability and a partnership mindset will be best placed to unlock sustainable value.”

Looking Ahead

The perspectives of the industry and legal professionals suggest that the significance of India-UK FTA extends beyond trade liberalisation. The agreement provides a platform for deeper engagement across investment, infrastructure development, technology collaboration and cross-border financing.

As businesses navigate this evolving landscape, sustained success is likely to be driven by a combination of governance, regulatory readiness, commercial alignment and effective collaborations across jurisdictions. The organisations that are able to balance these considerations while fostering long-term partnerships will be best placed to unlock the full potential of India-UK corridor. 

Editorial Note: The views expressed in this article are solely the personal and professional views of the respective contributors and are intended for academic discussion and thought-leadership purposes only. They do not necessarily represent the views, policies or official positions of their respective organisations. References to any law firm, company or professional adviser are made solely in the context of industry commentary and should not be construed as an endorsement, recommendation or preference by any contributor or their employer.