UK firms looking to India for growth despite trade deal delays
A host of UK firms are looking to expand their operations in India despite delays to the UK-India trade deal.
India is now considered a core international growth market for UK mid-market firms, according to a survey of a survey of just over 600 medium-sized UK firms by accountancy firm Grant Thornton.
Just over 70 per cent of UK firms surveyed said a free trade agreement between London and Delhi would encourage them to explore opportunities there.
Of those that had operations in India, 94 per cent said they plan to expand, mostly within the next two years.
But firms noted the challenges of moving into the Indian market, citing high tariffs, protectionist policies and infrastructure issues.
Anuj Chande, Head of South Asia at Grant Thornton, said: “An FTA should reduce tariffs and duties to allow for a more level playing field for overseas businesses and give greater access to a large and fast-growing market.”
It comes as the UK-India trade deal talks have faced stumbling blocks.
It has faced delays after UK ministers were reluctant to grant more visas to Indian workers, according to reports.
While India wants its Indian firms to be able to bring more workers into the UK, the UK is focused on securing concessions for the Square Mile.
UK-India trade deal talks completed their eleventh round this week, with the government signalling progress following a visit by commerce minister Piyush Goyal.
Goyal visited London last week and met business secretary Kemi Badenoch, as well as Douglas McNeill, Rishi Sunak’s chief economic advisor.
Trade between the two nations is “clearly on the rise”, a Department for Business and Trade source said, and is “significantly up” at £36bn in 2021, compared to the year before.
The Prime Minister’s official spokesman said: “The talks are still ongoing. We have made some progress in recent weeks and months.
“We haven’t set a deadline on when those talks will conclude. The PM has met with Narendra Modi on a number of occasions and discussed the trade deal.”
Asked about the reported conflict between a trade deal and migration policy, he said: “It’s important not to conflate the two issues. We set our migration policies, they’re not done through trade deals.”