UK–India Trade Deal: Opportunities and Risks

Quick Summary 

• The new UK–India trade deal opens up exciting opportunities for access to Indian tech talent and services. 
• But it also raises questions around ethical procurement, environmental standards, and regulatory compliance. 
• UK organisations, especially in the public sector, must continue to meet legal obligations like ISO standards, Net Zero goals and modern-slavery laws. 
• Trustco will continue to act as an assurance layer, helping clients vet suppliers and meet their responsibilities – wherever they’re sourcing from. 
• More competition and lower costs are a good thing, but assurance is more essential than ever. 

The newly signed UK–India trade deal is being hailed as a landmark move that will boost bilateral trade and open up access to one of the world’s most dynamic economies. And for good reason: India is a world leader in IT services, software development, remote support and cloud infrastructure. For UK organisations looking to modernise their tech stack or get better value for money from their suppliers, this is a real opportunity. 

But trade liberalisation isn’t a free pass. With the benefits come responsibilities, especially when it comes to regulatory compliance and ethical sourcing. And that’s where things get a little more complicated. 

Hiring From India Doesn’t Remove UK Regulations  

It’s tempting to focus only on the cost benefits. Indian suppliers can often offer IT services, software and hardware at significantly lower prices than UK or European counterparts. But there are still strict standards UK organisations need to meet, particularly in the public sector. 

For example: 

• Modern slavery and labour laws: UK companies are still bound by the Modern Slavery Act. Working with Indian suppliers doesn’t change that, and due diligence must still be carried out to ensure no unethical labour practices are involved. 

• Environmental reporting: UK businesses are increasingly expected to measure and reduce their environmental impact. But how do you measure a carbon footprint when your software provider is based in Hyderabad or Bangalore? 

• Ethical procurement: For NHS trusts, councils and other public bodies, procurement isn’t just about price. It’s about sourcing ethically, sustainably and transparently. That doesn’t stop at the UK border. 

• Standards like ISO 14001, Net Zero and CRP: These aren’t optional extras. They’re part of the regulatory fabric in the UK. But will Indian partners know how to comply? Will they be willing to? 

Important Questions That Still Need Answers 

The deal is signed, but many operational details are yet to be clarified. We think it’s fair to ask: 

• Will the UK government issue clear guidance on how organisations can maintain regulatory compliance when buying from Indian companies? 

• Will there be any formal support in helping UK organisations vet new Indian suppliers? 

• How can businesses be confident they’re trading with reputable partners who understand the UK’s ethical and legal requirements? 

Until those questions are answered, caution and a strong assurance process are essential. 

The Good News: Opportunity and Competition Are Welcome 

Let’s be clear: increased competition is a good thing. Access to India’s talent pool and tech innovation is an exciting development. It could mean: 

• Lower costs on everything from software licences to remote support. 

• Improved service offerings as new providers bring innovation to the table. 

• Greater flexibility for UK organisations that want to scale quickly or try new tech without heavy upfront investment. 

This is especially true in sectors like SaaS (Software as a Service), where Indian companies are already global players. 

Trustco: An Assurance Layer You Can Rely On 

At Trustco, we see our role in this changing landscape as an assurance partner. We’ll continue to help our customers: 

• Vet new suppliers, including those based overseas. 

• Establish clear contracts and expectations around regulatory compliance. 

• Monitor performance and ensure ongoing adherence to standards. 

• Step in with mitigation strategies if anything doesn’t feel right. 

Just because a supplier is based abroad doesn’t mean you can’t hold them to UK standards. But it does mean you need the right checks in place, and someone to help you manage the risk. 

Proceed, With Caution 

This deal is a step forward for UK trade, for tech innovation and for global collaboration. But it’s also a reminder that cheaper or faster doesn’t always mean better, especially when it comes to ethics, the environment or compliance. 

As new opportunities appear, the role of smart procurement and trusted assurance partners becomes even more critical. 

We’re ready. Are you? Speak to Trustco today about harnessing the opportunities of the supply chain.