UK BUSINESSES are increasing their focus on India as a key market following the UK–India Free Trade Agreement (FTA), according to Grant Thornton’s latest International Business Report (IBR).
The report found that 72 per cent of UK firms now see India as a major international growth market, up from 61 per cent last year.
While only 28 per cent currently operate in India, 73 per cent of those without a presence plan to enter the market, including 13 per cent within the next year.
The Britain Meets India 2024 report said 667 British companies are already operating in India, generating £47.5 billion in revenue and employing over 516,000 people.
Among Indian firms, 99 per cent of those already in the UK plan to expand, while nearly 90 per cent of those not yet present intend to set up operations.
Anuj Chande, Partner and Head of South Asia Business Group at Grant Thornton UK, said: “The shift we’re seeing is clear: UK mid-market businesses are no longer asking ‘why India’ — they are asking ‘how soon’.
“With 73 per cent of firms planning to establish operations in India and over half of existing players looking to scale up within a year, this is a pivotal moment. The UK–India FTA is a game-changer, reducing entry barriers and accelerating opportunity, but it won’t remove the complexity of operating in a fragmented and dynamic market.”
Chande added that the recent UK trade delegation accompanying the Prime Minister’s visit has added to the impetus to trade and invest with India.
However, 63 per cent of UK firms cited regulation and foreign exchange controls as the main barriers to operating in India, while 38 per cent mentioned infrastructure gaps. For Indian companies, tariffs, regulation, and the UK’s fragmented regulatory system were the key concerns.
Despite the challenges, 21 per cent of UK businesses said they had no concerns about the FTA and viewed it as wholly beneficial.
