New Delhi, Feb 26: The United Kingdom has unveiled 17 new investment and export deals with India during the ongoing visit of its Trade Secretary Jonathan Reynolds and Investment Minister Poppy Gustafsson, signaling a strengthening of bilateral economic ties.
The announcement aligns with India's recent Union Budget, which has opened doors for increased foreign investment in the insurance sector. A significant policy shift now allows foreign direct investment (FDI) in the insurance sector to rise from 74% to 100%, creating fresh opportunities for British insurance companies to expand their presence in India.
The UK, home to the third-largest technology economy globally, is also seeing an uptick in British tech companies expanding into India, leveraging the country’s rapidly growing digital market.
Tech and Life Sciences Driving UK’s Growth in India
Speaking on the developments, Business and Trade Secretary Jonathan Reynolds highlighted the growing synergy between the two nations in key economic sectors."Technology and life sciences are two huge growth areas for the UK economy. It’s great to see British businesses in these sectors expanding into the dynamic Indian market. Their success will contribute tens of millions of pounds to the UK economy," Reynolds stated.
The UK and India already share robust trade and investment ties, with over 950 Indian companies operating in the UK and more than 650 UK firms established in India. Collectively, these enterprises support over 600,000 jobs across both nations.
Surge in Indian Investment in the UK
The recent wave of Indian investments in the UK—valued at over £100 million—is expected to create hundreds of jobs over the next three years, spanning AI, professional services, and textiles. The readout noted that this surge underscores global confidence in the UK's investment climate.Over the past year, the value of inward FDI stock from India into the UK increased by 28%, reinforcing India’s position as the second-largest investor in the UK by the number of projects for five consecutive years.
Minister for Investment Poppy Gustafsson emphasized the UK’s commitment to strengthening ties with Indian businesses.
"The new Indian investment proves that the UK’s Plan for Change is providing the confidence for Indian companies to invest in Britain. We aim to be more ambitious and collaborative than ever," she remarked.
Resumption of Free Trade Agreement Talks
Reynolds and India’s Commerce Minister Piyush Goyal have relaunched negotiations on a UK-India Free Trade Agreement (FTA) in a key diplomatic development. This initiative aims to enhance economic collaboration, fostering trade and investment that benefits both economies.Meanwhile, Minister Gustafsson is visiting Mumbai and Bengaluru to champion British trade interests and explore further investment opportunities for Indian businesses in the UK.
The announcement of these investment and export deals marks a significant step in deepening the economic partnership between India and the UK, paving the way for enhanced trade collaboration and mutual growth.
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