- Access to a large market: The UK is the fifth largest economy in the world and has a population of over 66 million people, making it an attractive market for Indian manufacturers to target.
- Cultural ties: The UK and India share a strong cultural connection, with English being widely spoken in both countries. This can make it easier for Indian manufacturers to do business in the UK.
- Strong business environment: The UK has a strong business environment with a stable political system, a well-developed legal framework, and access to a highly skilled workforce. This can make it easier for Indian manufacturers to operate in the UK and to establish partnerships with UK businesses.
- Supportive government policies: The UK government has introduced several policies to encourage investment and trade with India, including the UK-India Joint Economic and Trade Committee (JETCO) and the UK-India Tech Partnership. These policies can provide support and guidance for Indian manufacturers looking to do business in the UK.
- Strategic location: The UK is strategically located in Europe, making it a gateway to other European markets. This can make it an attractive location for Indian manufacturers looking to expand their reach beyond the UK.
India and the UK have been negotiating a free trade agreement (FTA) since 2018, but as of March 2023, the deal has not yet been finalized. However, both sides have expressed their commitment to concluding the deal as soon as possible.
The proposed trade deal between India and the UK aims to reduce trade barriers and increase trade between the two countries. Some of the key areas that the deal is expected to cover include:
- Tariff reductions: The FTA aims to reduce or eliminate tariffs on goods traded between India and the UK. This can help to reduce the cost of trade and increase the competitiveness of businesses in both countries.
- Services trade: The deal is expected to include provisions to facilitate the trade in services between India and the UK. This can help to increase the flow of skilled professionals, such as IT workers, between the two countries.
- Investment: The FTA is expected to provide greater protection and predictability for investors from both India and the UK. This can help to increase investment flows and promote economic growth in both countries.
- Intellectual property: The deal is expected to include provisions to protect intellectual property rights, such as patents, trademarks, and copyrights.
- Regulatory cooperation: The FTA is expected to promote greater regulatory cooperation between India and the UK. This can help to reduce non-tariff barriers to trade, such as differences in technical standards and regulations.
Overall, the trade deal between India and the UK is expected to be a comprehensive agreement that covers a wide range of areas. Once finalized, the deal has the potential to significantly increase trade and investment between the two countries.