Indian Businesses Eye UK for Expansion Amid Potential FTA

Indian businesses view the UK as a prime destination for international expansion, with 89% showing preference for the UK market. Likewise, 61% of UK businesses see India as a growth market. The proposed India-UK Free Trade Agreement (FTA) is expected to further amplify business opportunities and ease regulatory hurdles between the two countries.

Indian businesses are increasingly considering the UK as a prime destination for global expansion, according to a new analysis by Grant Thornton UK. The study reveals that 89% of mid-market Indian businesses prioritize the UK for growth, while 61% of UK businesses have similar views about India.

The proposed India-UK Free Trade Agreement (FTA), which is currently in its fourteenth round of negotiations, is seen as a game-changer. Such an agreement could ease market access, streamline visa processes, and stimulate bilateral trade and investment, as per Anuj Chande, Head of South Asia Business Group at Grant Thornton UK.

Challenges remain, such as high operational costs and regulatory hurdles in the UK, and infrastructure and foreign exchange controls in India. Despite these obstacles, significant investor interest persists, with 42% of UK businesses planning to establish a presence in India within the next two years.

(With inputs from agencies.)