Why APAC Manufacturers Are Investing in Manchester

Manchester has a proud history – and a bright future.

The city in north-west England came to the fore during the Industrial Revolution and is today spearheading a new revolution in industries.

Manchester is the UK's largest advanced manufacturing and engineering cluster, home to over 8,000 companies and 115,000 employees. The city has attracted more international investment than any other UK regional city for the last decade and is the fastest growing economy in the UK.

Attracting Japanese investment

Investment in Manchester is coming from across the globe, not least from Japan, whose companies have invested nearly £118m in Greater Manchester in the last 12 months alone, with major commitments from Astemo (£100m, 200 jobs), Mizkan (£17m) and Daikin (£900,000).

Greater Manchester is home to over 25 Japanese businesses including Hitachi, NGK, Shimadzu and Sharp, while Invest Manchester and the Osaka Chamber of Commerce recently signed a Memorandum of Agreement to strengthen business collaboration and facilitate further investment.

These strong partnerships and relationships are among the reasons why Manchester has been voted best-performing UK city outside London for attracting foreign direct investment three times in the last five years.

Deepening connections with India

While Indian firms including Tech Mahindra and HeroCycle are already present in Manchester, the doors of opportunity were thrown wide open with the UK-India Free Trade Agreement, signed in May 2025 and ratified in July 2025.

The deal includes immediate tariff cuts on advanced machinery, creating significant new opportunities for Indian manufacturers looking to expand into the UK and European markets.

Early wins include the Henry Royce Institute signing an MoU with Tata Steel investing £10m for a Centre for Innovation in Manchester over four years.

India is Greater Manchester's fastest growing partner country for service exports, now worth £337 million to the local economy. And the city has the infrastructure in place to drive greater growth.

The newly inaugurated Consulate General of India in Manchester, opened in March 2025, prioritises business engagement and regional cooperation, while Manchester Airport now offers direct flights to Mumbai, Delhi, Singapore and China, with IndiGo operating the Mumbai route four times weekly following strong demand since launch in July 2025.