Business opportunities for UK to venture into India in 2024

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The UK-India relationship traces its roots to the early 1700s, boasting a rich historical story. Business ties between these two nations are far from recent and go back to the era of the East India Company, founded and established by our ancestors. British merchants, deeply involved in India's spice trade, drove the expansion of English commerce, catalyzed by the East India Company. India, a fertile ground for enterprise, facilitated the growth of British interests across diverse sectors—spices, cotton, silk, indigo, and beyond. This long-lasting partnership has witnessed India's constant support, offering resources and manpower since time immemorial.

Building onto that, today, we lay out the evolution of this business alliance, exploring how both countries capitalize on their shared history and resources to strengthen their roles as mutual economic pillars.

The foundation of UK India business ties

In recent days, the relationship between UK India has reached new levels of cooperation and mutual benefit. The visit of UK Prime Minister Rishi Sunak to India and his meeting with Indian Prime Minister Narendra Modi during the , held on November 16, 2022, underscored the growing ties between the two nations. At this prestigious intergovernmental forum hosted by India, significant strides were made in business and trade discussions, further solidifying the economic partnership between India and the UK. The shared cultural ties, language, and democratic values between the two countries formed a strong foundation for collaborative decision-making, leading to the establishment of the Young Professionals Scheme during the summit.

Trade relations between India and the UK have been on a steady upward trajectory, as evidenced by Chancellor of the Exchequer Jeremy Hunt's visit to the 12th Economic and Financial Dialogue in India on September 11, 2023. This visit served to enhance economic dialogue and explore avenues for deeper collaboration across various sectors. The discussions held during the G20 Trade Ministers' meeting highlighted the mutual recognition of opportunities for further cooperation and growth of UK India.

India's recent economic reforms have significantly improved its attractiveness as a destination for foreign investments. agreements and diplomatic efforts have facilitated increased participation of UK businesses in the Indian market, fostering an environment conducive to growth and expansion. The bilateral trade between India and the UK surged to £36.3 billion in the fiscal year 2022/23, representing a remarkable 34.2% increase from the previous fiscal year.

India has emerged as the UK's 12th largest trading partner, accounting for 2.1% of the UK's total trade. The initiation of the Free Trade Agreement (FTA) negotiations between the two countries at the Joint Economic Trade Committee (JETCO) meeting on 12-15 January 2022 marked a significant milestone in their economic relationship. Moreover, India's Department for Business and Trade's investment in 118 projects created 8,384 new jobs in the UK, solidifying its position as the second-largest source of foreign direct investment after the US.

India holds a prominent and increasingly significant position in the business and trade relationship with the UK, characterized by mutual respect, collaboration, and shared economic goals.

The present UK business landscape in India

The UK companies have a strong presence in India across diverse service sectors. It's also the 6th largest investor in India for the past two decades, with a massive investment of USD 34,513.58 million in . UK companies have made significant progress in finance, technology, education, and healthcare. Presently, there are 635 UK companies in India, generating a total turnover of approximately USD 48.8 billion and employing around 666,992 people as of 2023. With the rise of digital transformation and the growing demand for specialized services, UK firms have

found a welcoming market in India. The consumer market in India increasingly prefers British goods and services, especially in the luxury and lifestyle sectors. Responding to this demand, Reliance Brands Ltd. (RBL) has partnered with UK food giant Pret A Manger to introduce the food chain in major Indian cities. Additionally, the demand for high-quality education, healthcare, and financial services has created opportunities for UK companies to establish themselves as reliable providers in India. Consequently, various corporate giants like Tesco, Claranet, Gallagher Re, and others have either established or are planning to establish their presence in Indian cybercities such as Bengaluru, Hyderabad, and Pune.