24 Feb '25
(Fibre2Fashion News Desk (DS): Talks on a planned UK-India trade deal are restarting today as UK ministers arrived in India to negotiate a huge economic prize helping to deliver on the growth agenda, the UK government said.
India is forecast to have the highest growth rate in the G20 for the next five years and set to become the world’s third biggest economy by 2028. With an expected 95 million strong middle class by 2035, there are more and more opportunities every day for UK businesses to sell to consumers in India ready to buy British, a government release noted.
Insights
Talks on a planned UK-India trade deal are restarting today as UK ministers arrived in India to negotiate a huge economic prize helping to deliver on the growth agenda, the UK government said.
With an expected 95 million strong middle class by 2035 in India, there are more and more opportunities every day for UK businesses to sell to consumers in India ready to buy British, it noted.
“Growth will be the guiding principle in our trade negotiations with India and I’m excited about the opportunities on offer in this vibrant market,” UK business and trade secretary Jonathan Reynolds said.
“Trade ministers from both countries will kickstart negotiations on a modern economic deal with two-days of focused discussions—the first time both negotiating teams have formally got around the table under this government,” he added.
As part of the visit, UK investment minister Poppy Gustafsson will address investors in Mumbai and Bengaluru to sell the United Kingdom as the best and most connected place for Indian businesses to invest.
“Success in the FTA [free trade agreement] will support further economic growth for the world’s 5th and 6th largest economies. It will catalyse collaboration beyond into other areas too. Importantly, it will signal the UK and India are strategic partners,” Chair of UK India Business Council Richard Heald said.
India has been the second biggest source of foreign direct investment into the United Kingdom for five consecutive years in terms of number of projects. In terms of value, the most recent stats show a 28 per cent year-on-year increase in investment stock at the end of 2023.
The UK and India are currently the sixth and fifth largest global economies respectively, with a trade relationship worth £41 billion (~$51.89 billion) and investment supporting over 600,000 jobs across both countries.
A trade deal could unlock new opportunities for businesses and consumers in all regions and nations of the UK, support jobs, boost wages, and back the high-growth sectors identified in the government’s upcoming Industrial Strategy, such as advanced manufacturing, clean energy, financial services, and professional and business services, the UK government release added. (Source: Fibre2Fashion.com)