UK Strikes Fresh Deals to Strengthen India Ties, Secures £1India’s £100 million investment in the UK signals growing confidence and economic synergy. With tech, life sciences, and insurance sectors set to benefit, the renewed trade push reflects strategic expansion. The revival of FTA talks adds momentum, reinforcing India’s position as a key player in the UK’s investment landscape.
New Delhi: The UK has announced 17 fresh trade and investment deals with India, securing over £100 million in Indian investment and paving the way for expanded UK exports in tech and life sciences. The development comes as bilateral trade between the two countries reached £41 billion in the 12 months leading up to September 2024.
UK Business and Trade Secretary Jonathan Reynolds and Investment Minister Poppy Gustafsson unveiled the agreements during their visit to India this week, reinforcing economic ties between the two nations. Currently, over 950 Indian-owned companies operate in the UK, while more than 650 UK businesses have a presence in India, collectively supporting over 600,000 jobs.
“Tech and life sciences are two huge growth sectors for the UK economy. I’m proud that government support has helped some of our finest businesses in these sectors to expand into the exciting Indian market. It’s great to see them going for growth, and their successes will amount to tens of millions of pounds for the UK economy,” said Reynolds.
Indian Investment Pours into the UK
India’s recent budget has provided UK insurance firms greater opportunities by raising the foreign direct investment (FDI) cap in the sector from 74% to 100%. Indian investors, in turn, are showing increased confidence in the UK, with FDI stock from India rising by 28% in 2023.
Aaseya Technologies is expanding in London with a £25 million investment, creating 250 jobs. Sastra Robotics has pledged £8 million for its Manchester base, bringing 75 jobs. AI firm Deepcytes will invest £5 million in London, creating 80 positions to tackle cyber fraud and bullying.
Luxury homeware brand Jaipur Rugs is investing £5 million and opening a store in London, while Time Cinemas is setting up its global headquarters in the UK with a £20 million investment, creating 75 jobs. Other Indian firms, including Test Yantra, Novigo Solutions, and Zoondia Software, are also ramping up investments in the UK, collectively generating hundreds of new jobs.
Investment Minister Poppy Gustafsson said, “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. Now the UK will strive to be more ambitious and collaborative than ever before as we show the world why the UK is the best place to invest.”
UK Companies Expand Footprint in India
Several UK firms are also deepening their India presence. Shipley-based Radio Design has set up a manufacturing unit in India, while Marcus Evans Group has launched its operations in Mumbai. Leicester’s Microfresh is expanding its antimicrobial technology into India’s textile and leather industry.
Meanwhile, UK-based Novocuris is now operating in multiple Indian hospitals, and Biocomposites is supplying medical devices for orthopedic treatments in India. Birmingham’s REM3DY Health has partnered with an Indian pharmacy giant to introduce its innovative gummy vitamin products.
Free Trade Talks Back on Track
In a major push, Reynolds and Indian Commerce Minister Piyush Goyal announced the resumption of Free Trade Agreement (FTA) negotiations, aiming to unlock more opportunities for businesses and boost economic growth in both countries.
Gustafsson, currently visiting Mumbai and Bengaluru, is promoting British investments and reinforcing trade ties. With India continuing to be the UK’s second-largest investor in terms of project numbers for five years, the momentum is expected to grow further in the coming years.
The new wave of investment and trade collaborations underscores a deepening economic bond between the UK and India, setting the stage for stronger future partnerships.