He will also be the British Deputy High Commissioner for Western India.
He will take up both positions, based in Mumbai, on August 5, it was officially announced.
As Director General India of UKTI, Iyer will have the overall responsibility for the UK-India commercial and trade relationship across the country.
He comes to India from London where he has been a high-ranking official at the British Treasury and the Prime Minister's Strategy Unit.
He was also a Kennedy Scholar and Teaching Fellow in International Capital Markets at Harvard University.
Iyer was born in London to parents of Indian origin and spent his formative childhood years in India.
He joined the British government in 2008 as Deputy Director, Prime Minister's Strategy Unit.
In 2010, he moved to the Treasury, first as Deputy Director, Strategy, Planning & Budget, and then as Head of Financial Sector Interventions.
Prior to that, he was at the Boston Consulting Group where he worked mainly in the Financial Services Practice but also for large multinational media and retail clients.
"My aim is to take the entire India-UK business relationship across the whole country to the highest possible level", he said.
"I am very excited at the prospect of living and working in India, it's a country of boundless energy, talent and potential. Having lived and studied in India whilst growing up, I am equally keen to play my part in promoting the academic, cultural and social links between our two countries", he said.
