With India and the UK now standing as the fourth and sixth largest economies, the FTA is widely seen as the cornerstone of a deepening investment corridor that could reshape economic diplomacy between South Asia and Europe.
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Addressing questions from lawmakers, Reynolds said the pact places the United Kingdom at a “genuine competitive advantage,” especially in advanced manufacturing sectors such as automotive and machinery. He noted, “India is traditionally a very protectionist economy, and it is the world’s fastest-growing big economy. Whether it is for goods, services or the West Midlands as a whole, there is much to celebrate.”
The deal, finalised last month, comes at a time when both India and the UK are seeking to deepen trade relations as part of their post-Brexit global strategies. According to UK’s Department for Business and Trade (DBT), the FTA is expected to lift UK GDP by GBP 4.8 billion and drive annual wage growth of GBP 2.2 billion over the next ten years.
“Indian companies continue to play a pivotal role in the UK’s growth story — from job creation to innovation,” said Anuj Chande, Partner and Head of South Asia Business Group at Grant Thornton. “This year’s tracker showcases their growing diversification, scale and resilience, and reflects the growing maturity and confidence of Indian enterprise on the global stage.”
The 2024 edition of the tracker noted a record 971 Indian-owned companies operating in the UK, a figure that has shown consistent year-on-year growth.
With India and the UK now standing as the fourth and sixth largest economies, the FTA is widely seen as the cornerstone of a deepening investment corridor that could reshape economic diplomacy between South Asia and Europe.
The deal is also being perceived as a benchmark for future trade pacts involving India, with its generous concessions and strategic alignments being interpreted as a sign of India’s evolving trade policy, aimed at global integration rather than protectionism.
