Copyright knnindia
New Delhi, Oct 21 (KNN) UK businesses are accelerating their entry into India following the signing of the UK-India Free Trade Agreement (FTA), according to a report by Grant Thornton. The firm’s International Business Report (IBR) reveals a sharp rise in interest, with 72% of UK companies identifying India as a priority market for growth — up from 61% in the previous year. Although only 28% of respondents currently have operations in India, nearly three-fourths (73%) of those without a presence plan to enter the Indian market soon, with 13% aiming to do so within the next 12 months. The UK-India Comprehensive Economic and Trade Agreement (CETA), signed during British Prime Minister Rishi Sunak’s visit to India in July, is being hailed as a potential “game-changer” for trade. Once ratified, the agreement is expected to deepen the Euro 44.1 billion bilateral trade relationship and ease entry barriers for British firms. Businesses cite India’s large consumer base, skilled workforce, and robust economic growth as key attractions. About 65% of respondents highlighted India’s fast-expanding economy, while 60% pointed to its vast market potential. Furthermore, 79% of companies agreed that trade pacts such as the FTA encourage investment and growth through lower operational costs and smoother talent mobility. However, the report also notes some caution among investors. Around 63% of firms cited complex regulations and foreign exchange controls as hurdles, while 38% mentioned infrastructure gaps and market fragmentation as challenges. Overall, the study suggests UK businesses are shifting their focus from “Why India?” to “How soon can we be in India?”, reflecting a strong appetite for deeper engagement and investment in one of the world’s fastest-growing economies. (KNN Bureau)
