BRITISH Asians are the least likely to receive government-backed Start Up loans for their business when compared to other ethnic groups, figures show.
Experts have called for an investigation into any evidence of “discrimination” to ensure more Asian entrepreneurs do not miss funding for their firm.
From 2014-2018, people from black and mixed ethnic groups were much more likely to receive the Start-Up Loan than those from other ethnic groups, while people of Asian origin were the least likely to have their application accepted.
Under the scheme, individuals Cash Loans Brisbane can apply for between £500 and £25,000 with a fixed interest rate of six per cent per year and 12 months of free mentoring. The amount must be repaid in full over one to five years.
The Office for National Statistics (ONS) data also showed among Asians, the number of businessmen and women receiving a Start-Up Loan has fallen in four of the past five years. The figure was 3.1 per 10,000 people in 2013 which slumped to 1.5 per 10,000 people in 2018.
Professor Sunitha Narendran, director of the University of Roehampton Business School in London, told Eastern Eye: “Start up loans are not just critical for enterprises to emerge and operate, they also have important implications for the UK given the large contributory role that small enterprises play in the economy.
“Existing research on lending decision-making show us that these decisions utilise multiple criteria based on stipulated rules and objective standards.
“These criteria are prioritised intuitively by the decision-maker or loan officer when making a loan decision, relying on their objectivity and expertise. The intuitive element in multi-criteria decision-making is an accepted part of the process and therefore not unusual.
“However, as we know, all intuitive processes carry with it potential for biases and discrimination.
She added: “The [ONS] report suggests that successful loan applications from black and mixed ethnic groups have increased, possibly due to targeting people from these groups in the early years of the scheme. A similar targeting approach could now be used for British Asians to not just redress the evident imbalance, but to catalyse entrepreneurial motivations of aspiring British Asian entrepreneurs.
“In addition to these targeted interventions, there should be more in-depth research on the sources of bias to mitigate the risks of discrimination and increase the effectiveness of lending practices in being fair and non-discriminatory.
Overall the rate of Start Up Loans fell from 3.3 loans per 10,000 people (10,371 loans) in 2013 to 2.4 per 10,000 people (7,817 loans) last year. There was a decrease in both the rate and numbers of loans in every ethnic group except the Other group.
Separate research showed a fall in the number of new UK start-up businesses last year with researchers blaming the economic uncertainty caused by Brexit.
The Enterprise Research Centre recorded a drop from 325,900 to 284,000 companies in its annual UK Local Growth Dashboard report.
Hephzi Pemberton, founder of the Equality Group consultancy service, told Eastern Eye: “There is a general issue with the publicity of the loan scheme and the government needs to do more to ensure that entrepreneurs know about them and who can apply for them.
“Furthermore, with the diverse nature of businesses being founded by British Asians, there is a risk that entrepreneurs aren’t aware of what they can use the loans for.
“Despite some cultural differences in receiving loans, the government needs to reach out to the community to demonstrate the potential of the scheme and promote British Asian entrepreneurs to take advantage of it to start and build their own businesses.
She added: “At the Equality Group, we are continuing to promote the benefits of diversity in the private sector at board level to better represent society and improve the profitability of the UK’s businesses.
“This Start Up Loan scheme can be a catalyst to help promote diversity within the next generation of startups.”
It comes as the government unveiled a board of senior industry bosses to promote diversity across the UK workforce in September.
The Men As Change Agents (MACA) “Lead the Change” Board will encourage business leaders to promote inclusion in business and support the Hampton-Alexander Review in its efforts to see women representing 33 per cent of FTSE 350 business leaders by 2020.
Board members will also work to increase ethnic diversity in a bid to ensure each FTSE 100 board has at least one ethnic minority director by 2021.
On the Start Up loan figures, Labour MP Khalid Mahmood said: “It is absolutely appalling this is the case. People wrongly assume that Asians can get money from family as historically they have been successful starting from one store such as East End and Bestway.
“But if they are not able to develop that first shop, it is important they are able to do that.
“Councils should not ignore any BME group, where the information is not getting out. There are Asian TV channels, radio stations and newspapers for this, if people are not coming forward.”
Entrepreneur Sukhi Wahiwala said applying for the loan scheme needs to be made simpler.
He said: “Prior to 2014, there was a discussion that all job applications were going to be numbered instead of fully written with a name. This was due to the fact that it was found in government studies there was discrimination against names where white counterparts were more likely to receive the job.
“That did not happen so the rollover effect probably is more likely to have rolled over into other sectors as well.
“After reading the start-up loans myself, realising how in-depth and complicated they are to actually get the documents together, to get the mindset together, to answer the questions correctly and comprehensively.
“There should be someone on-hand specifically for the disadvantaged parts of society to assist them and verbally encourage them to answer the questions correctly, for those with dyslexia for example.”
A Start Up Loans spokesperson said: “The Start Up Loans programme does not discriminate against ethnic minority applicants and has a strong track record in issuing loans to people from all backgrounds, including those of Asian ethnicity.
"Our most up-to-date management information shows that our loan approval rate for Asian applicants does not vary significantly from the approval rate for the programme as a whole.”
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)
VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.
The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.
According to Vedanta's exchange filing on Thursday, the lenders involved in the deal include Standard Chartered Bank and its Mauritius unit, First Abu Dhabi Bank, Mashreqbank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt.
The company lowered its net debt by £876m, bringing it down to £8.1 billion in fiscal 2025.
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Trump said that while deals are being made with some countries, others may face tariffs.
US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.
“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.
The president also mentioned a trade agreement with China but did not provide details. "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals," he said.
‘Some we are just gonna send a letter’
Trump said that while deals are being made with some countries, others may face tariffs. "We're not gonna make deals with everybody. Some we are just gonna send a letter saying thank you very much, you are gonna pay 25, 35, 45 per cent. That's an easier way to do it," he said.
Trump's comments come as an Indian delegation led by chief negotiator Rajesh Agarwal arrived in Washington on Thursday for the next round of trade talks with the US.
Talks ahead of July 9 deadline
Both countries are working on an interim trade agreement and are aiming to conclude it before July 9. The US had announced high tariffs on April 2, but the Trump administration suspended them until July 9.
Agriculture and dairy remain sensitive areas for India, which has not included dairy in any of its free trade agreements so far. India is cautious about offering duty concessions in these sectors.
The US is seeking duty reductions on items such as industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, dairy products, and agricultural goods like apples, tree nuts, and genetically modified crops.
India, on the other hand, wants duty concessions for sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.
The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.
The main blow to Asda’s finances has come from its heavy debt load, a legacy of its £6.8bn buyout by the Issa brothers and private equity firm TDR Capital in 2021.
According to the report, the company’s debt pile, now close to £5bn, has become much more expensive to service as interest rates have risen. Last year, finance costs jumped by 38 per cent to £611 million, up from £441 million the previous year
Asda said it was forced to pay higher rates after refinancing part of its debt, putting further pressure on its bottom line.
Another major factor behind the loss is the ongoing “Project Future” – Asda’s multi-year plan to separate its computer systems from former owner Walmart. The project has been beset by delays and cost overruns, with total spending now approaching £1bn, far above its original budget
Last year alone, Asda spent £310m on the IT transition, which has included job cuts and outsourcing as the company tries to control costs. Problems with the new systems have also led to pay errors for thousands of staff.
While overall revenue rose thanks to new store openings, underlying sales have slipped. Like-for-like sales, excluding fuel, fell by 3.4 per cent to £21.7bn, with food sales down 3.7 per cent.
Meanwhile, Asda’s share in the UK grocery market has dropped to a record low of 12.1 per cent, with the retailer losing ground to rivals such as Tesco, Aldi, and Lidl
Despite efforts to win back shoppers with price cuts and a new convenience store push, Asda was the only major supermarket to report a sales decline in recent months, analysts said.
The company’s results were also hit by a £378m impairment charge, reflecting a drop in the value of its stores and assets. These one-off costs, combined with the IT spending, were singled out by Asda as the main reasons for the headline loss.
“The reported overall loss is the result of two significant one-off costs,” an Asda spokesman said, pointing to the impairment and Project Future costs. “These are not recurring costs and do not reflect the underlying performance of the business”
Allan Leighton, who returned as chairman last year, has launched a price war and cost-cutting drive to try to restore Asda’s fortunes. He has described many of the company’s problems as “self-inflicted” and is aiming to “turn it into what it was”. However, he has warned that a full recovery could take several years.
Despite the bleak headline numbers, Asda insists its core business remains profitable, with a pre-tax profit of £115m before exceptional items. Adjusted earnings before rent also rose slightly to £1.14bn.
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Mounjaro, or tirzepatide, is part of a new class of weight-loss medications, with trials showing patients losing an average of 20 per cent of their body weight after 72 weeks.
ELI LILLY said on Thursday that it has received approval from India's drug regulator to launch pre-filled injector pens of its weight-loss drug, Mounjaro.
The move gives the company more options to compete with Novo Nordisk, which recently launched its weight-loss drug Wegovy in the country.
Lilly began selling Mounjaro in India in late March for treating diabetes and obesity. Until now, it was available only in 2.5 mg and 5 mg vials.
"With this approval, all six dosage options for Mounjaro will soon be available in India, supporting a more personalised approach to treatment," Lilly India President Winselow Tucker said.
According to a company statement, the Central Drugs Standard Control Organization has approved Mounjaro KwikPen, for once-weekly use, in six dose strengths: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg and 15 mg.
The approval will allow Lilly to compete more directly with Denmark-based Novo Nordisk, which launched Wegovy in India on Tuesday with multiple dose strengths and an “easy-to-use” pen device.
India, with a rising number of diabetes and obesity cases, presents a major market for weight-loss drugs. A study published in the medical journal The Lancet ranks India among the top three countries globally for high obesity rates.
Lilly did not share pricing details. Each Mounjaro pen will have four fixed doses of 0.6 ml.
Mounjaro and Wegovy are part of a class of drugs known as GLP-1 receptor agonists. These help regulate blood sugar levels and slow digestion, which makes people feel full for longer periods.
In India, both companies are expected to face competition from domestic generic drugmakers that are working on lower-cost versions of Wegovy. The drug’s active ingredient, semaglutide, is set to go off patent in India next year.
INDIAN companies are well placed to support the UK’s economic growth, Eastern Eye has been told by Anuj Chande, partner and head of the South Asia Business Group at Grant Thornton.
He was speaking after the publication of Grant Thornton’s India Meets Britain Tracker 2025: The latest trends in Indian investment in the UK, which was released last week. While companies in India need little encouragement to enter the UK market, the reverse is not true.
Chande noted that small and medium-sized British businesses often remain unaware of the significant opportunities available in India and need more support to explore them.
He suggested that the 2.5 millionstrong British Indian community could play a vital role in helping UK firms understand the potential in India.
Chande said: “Maybe the UK government should appoint British Indian ambassadors to educate people who are not familiar with India that it is actually a great place to invest.”
The problem, he said, was not with large firms such as Tesco, M&S and BT. “If you look at all the big (UK) companies that have invested in India, they have all increased in size. I was told the other day that Tesco, which has a joint venture with Tata, now employs more people in India than in the UK.”
Chande said, in the 35 years he had been working in the UK-India corridor, “there’s not much traffic going from the UK to India. Mid-sized companies are starting to come. What needs to be done is a lot more publicity and coverage. If you take any sector, whether it’s consumer, healthcare, education, engineering or manufacturing, India has something to offer, quite apart from the sheer market size.
“Everyone talks about (India’s population of) 1.4 billion, but if you look in terms of middle-class consumers, it’s probably about 300-500 million, and growing rapidly. The UK is 50-60 million. India is 10 times the size.”
Piyush Goyal with shadow chancellor Rachel Reeves (centre), Vikram Doraiswami and other officials at the India Global Forum
The recently signed UK-India Free Trade Agreement “has opened up the market and there are no significant trade barriers, particularly as the UK domestic market is stagnant, with pedestrian economic growth here. The Department of Business and Trade have a role to play in making UK c o m p a n i e s aware of this opportunity on the back of the FTA.”
Chande spoke of the India Meets Britain Tracker, which is normally done in collaboration with the Confederation of Indian Industry (CII).
“This year we have brought on the IGF (India Global Forum) as a collaboration partner as they are very focused on future trends,” he explained.
A summary of the 2025 report, which Chande outlined at an IGF conference last week, says: “There are now 1,197 Indian-owned companies operating in the UK, an increase of more than 23 per cent on 2024 when 971 were recorded.
“The combined revenues reported by Indian-owned companies in the UK increased to £72.14 billion from £68.09bn in 2024. These businesses employ 126,720 people across the UK and have added over 8,000 new jobs in the past year.
“The proportion of female directors has also increased to 24 per cent from 21 per cent in 2024.
“This year’s listing of the fastest-growing companies also delivers strong results, with 74 companies recording revenue growth of 10 per cent or more. The 2025 Tracker companies achieved an average growth rate of 42 per cent and a combined turnover of £32.6bn. These firms also paid £67.3 million in corporation tax and created more than 56,000 jobs.
“Wipro IT Services UK Societas tops the growth rankings with a 448 per cent revenue surge, followed by a new entrant, corporate IT management firm, Zoho corporation Ltd, which posted 197 per cent growth.
“In terms of the sectors with the most Indian owned firms, the TMT (Technology, Media, and Telecommunications) sector continues to lead, accounting for 31 per cent of Tracker companies. Pharmaceuticals and chemicals hold strong in second place (22 per cent). Notably, financial services rose to 9.5 per cent of Tracker companies – their highest proportion in recent years – driven by the strategic expansion of Indian banks and financial institutions in London’s global finance hub.”
Chande said: “As the recent milestone UK-India Free Trade Agreement highlighted, there is a distinct economic commonality between the UK and India and a mutual desire to trade and invest more with one another. The UK government has said the deal would boost trade by an additional £25.5bn a year by 2040, which will give UK SME’s and corporates much better access to the fastest growing economy and an increasing middle-class population of 300 million plus.”
The tracker has a section called, Barriers to India investment in the UK, listing shifting tax regulations, complex immigration and visa requirements, increasing salary costs, challenges posed by the absence of an India-UK bilateral investment treaty, and market entry complexities.
Chande told the conference of the changes that had occurred in the 10 years since the Indian prime minister Narendra Modi packed out Wembley Stadium with 60,000 people in 2015: “There’s been a 50 per cent increase in the number of Indian companies in the UK. The size of combined turnover has also increased by 50 per cent and the number of employees has gone up by 25 per cent.”
Also present at the conference was Piyush Goyal, India’s commerce and industry minister, and Jonathan Reynolds, secretary of state for business and trade and president of the Board of Trade.
And , Goyal with Jonathan Reynolds
Goyal said: “I think the best way to understand why this (FTA) deal matters for businesses in the UK would be by explaining where the India growth story is heading. We are currently a $4 trillion (£2.9tr) economy, the fifth largest in the world. By the end of calendar 2025, when this year’s numbers come out, we will officially be declared the fourth largest economy. And by 2027, India is slated to become the third largest GDP in the world. “
Second data point I’d like you to recognise is that we are a young country. Our average age is 28.4 years. There’s no comparable country of size and scale with such a young population, expected to continue to be young for the next three decades.
“So, imagine an economy which is growing in US dollar terms, almost by 10 per cent a year, doubling every eight years. By 2047 when we celebrate 100 years of independence, we would have grown from a $4tr (£2.9tr) economy today to a $32tr (£23.7tr) economy.”
Goyal declared: “India is well poised to present to UK businesses a great opportunity. We can help the UK economy grow faster in a very uncertain world, full of volatility, full of uncertainty, full of challenges and crisis. India is an oasis of stability and rapid growth, home to a generally peaceful people who are recognised across the world. We have 40 million Indians across the world, recognised for their talent, for their skill, for the value they add to local economies and for their peaceful nature. They assimilate very well. You have a large Indian diaspora in the UK. You would never have found them wanting in terms of their loyalty to the UK, would never have found them creating any kind of disruption to the peace and harmony of the communities. And that is the strength of India.