The United Kingdom has announced 17 new export and investment deals with India during the visit of Trade Secretary Jonathan Reynolds and Investment Minister Poppy Gustafsson this week. The agreements, spanning multiple sectors, aim to strengthen economic ties and enhance business opportunities between the two countries.
Expansion of UK-India Trade Relations
During his visit, Trade Secretary Reynolds emphasized that the UK’s technology and life sciences sectors will see major growth opportunities in India. He highlighted how government-backed initiatives are supporting British companies in expanding into India’s growing market, boosting trade relations and creating significant economic value for both nations.
The visit also coincided with the relaunch of Free Trade Agreement (FTA) negotiations between India and the UK. Both countries are aiming to establish a comprehensive trade pact that will support jobs and economic growth on both sides.
Boost for British Insurance Sector in India
One of the key highlights of the visit was India’s recent Union Budget announcement, which increased the foreign direct investment (FDI) cap in the insurance sector from 74% to 100%. This policy change presents a significant opportunity for British insurance firms to expand their operations in India.
The UK government sees this as a crucial step in deepening financial cooperation between the two nations, enabling more UK-based financial and insurance firms to establish a stronger presence in India’s rapidly growing market.
Indian Investments in the UK on the Rise
India remains one of the largest foreign investors in the UK, with over 950 Indian-owned companies operating in Britain. Similarly, more than 650 UK firms are currently doing business in India, together supporting over 600,000 jobs across both economies.
The latest Indian investments in the UK—valued at over £100 million—are expected to create hundreds of new jobs over the next three years across diverse sectors, including AI, professional services, and textiles. The UK government’s pro-investment policies have led to a 28% year-on-year increase in inward FDI stock from India, reinforcing India’s position as the second-largest investor in the UK in terms of project numbers.
Strengthening UK-India Economic Cooperation
Minister for Investment Poppy Gustafsson, who visited Mumbai and Bengaluru, expressed confidence in continued UK-India business collaborations. She emphasized that the UK’s long-term investment plans provide Indian businesses with the stability and confidence to expand their operations in Britain.
“The new Indian investment proves that the government’s Plan for Change is giving Indian businesses the confidence they need to continue investing in Britain,” said Gustafsson.
The UK aims to deepen economic collaboration, fostering a more ambitious and cooperative trade environment between the two nations. The new trade and investment deals mark a significant milestone in strengthening the UK-India economic partnership, promising mutual growth, job creation, and increased market access in both countries.
