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The Hindu·4 min read·medium

India-U.K. FTA creates predictability for businesses on both sides: City of London policy chief

S
Sriram Lakshman
India-U.K. FTA creates predictability for businesses on both sides: City of London policy chief
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The City of London's policy chief discusses how the proposed India-U.K. trade agreement will foster a more predictable environment for investment and business expansion. The deal is expected to boost both British investment in India and Indian fintech expansion into the U.K.

Why it matters

Strengthening economic ties between India and the U.K. through a trade deal could significantly impact capital flows and market access for both nations.

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Will British companies manufacture and invest more in India as a result of this trade deal, or are you expecting it to spur exports to India mostly?

I think it will do both, but the bigger story is investment.

The U.K.-India Comprehensive Economic and Trade Agreement (CETA) creates a more predictable and attractive environment for businesses on both sides. For British companies already operating in India, it gives them greater confidence to expand their presence, invest for the long term, and participate in India’s growth story. For firms not yet in the market, it lowers barriers and makes India a more accessible destination.

India is the world’s fastest-growing major economy, with ambitious plans around infrastructure, manufacturing, digitalisation and energy transition. Those are areas where British firms bring expertise, capital and professional services. As a result, I expect to see increased U.K. investment into India alongside stronger trade flows.

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