Latest news with #UK-India
Time of India
2 days ago
- Business
- Time of India
UK's global trade outlook sees India as Asia's 'standout growth engine'
India is set to become the world's third-largest economy by 2028. A new trade deal between the UK and India gives British businesses an edge. The UK-India FTA aims to boost trade and economic growth. UK products will see tariff reductions, saving businesses millions. The deal is expected to increase bilateral trade significantly. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads As the "standout growth engine" in Asia, India is projected to be the third largest economy in the world by 2028, and the recent Free Trade Agreement (FTA) offer British businesses a "major advantage" over their international competitors, the UK's new trade strategy and outlook have 'UK's Trade Strategy' and an accompanying 'Global Trade Outlook 2025' released by the Department for Business and Trade (DBT) on Wednesday spotlights the trade deal with India, concluded early last month, as the centrepiece of the Labour government's approach to utilising FTAs as an important tool to meet its economic growth agenda."Asia is expected to benefit from standout growth from India and a new generation of fast-growing emerging markets," reads the outlook."Asia's centre of growth is expected to shift from China to India and other emerging markets, while Africa's demographic boom could drive high growth if job creation can keep pace with population growth," it the FTA, the trade strategy points out that the "comprehensive agreement" with India is reflective of the "transformative" impact that Free Trade Agreements can reads: "For example, the UK-India FTA is a landmark trade deal that will drive growth and boost trade with one of the fastest-growing economies in the world. As soon as the deal comes into force, UK products will benefit from a saving of up to an estimated GBP 400 million a year, from India cutting its tariffs on existing trade alone, which could increase to around GBP 900 million a year after staging over 10 years."And that's before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors."The trade strategy, which complements an Industrial Strategy released earlier this week, is aimed at setting a clear direction for the government's growth and job creation goals."What works for business, works for Britain. It means more jobs, more opportunities, and more money in people's pockets. That's why I've backed British industry through global headwinds - securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country," said British Prime Minister Keir Starmer."Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy," added Business and Trade Secretary Jonathan strategy reiterates the "huge economic win" from the India FTA, which "slashes Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90 per cent of tariff lines for UK exports to unleash opportunities for businesses across our regions and nations"."Furthermore, it delivers certainty for service suppliers, including non-discrimination commitments to support new opportunities. It delivers on our Plan for Change and is expected to increase bilateral trade by GBP 25.5 billion, increase UK GDP by GBP 4.8 billion, and boost wages by GBP 2.2 billion every year in the long run," the strategy India-UK deal is expected to be officially signed off at the end of next month following the obligatory parliamentary clearance in Britain."We in India have a much faster process, comparatively, so we'll be ready as soon as the legal scrubbing is done and the document is sorted out," Commerce and Industry Minister Piyush Goyal had said during his UK visit last week to discuss the next steps in the FTA.
Mint
2 days ago
- Business
- Mint
'UK firms still sitting on their hands when it comes to Indian investment,' says London-based Indian entrepreneur
London [UK], June 26 (ANI): Sukhpal Ahluwalia, a leading London-based Indian entrepreneur, has urged UK businesses to ramp up their investments in India dramatically. The comments come as Ahluwalia looks further to dial up his business interests in the country - and prepares to spend significantly more time in the country moving forward. Ahluwalia believes the global trade war has the potential to push the UK and India even closer together - and that UK businesses should now take advantage of the fast-growing, burgeoning economy in India as they seek to diversify away from other countries, notably China. Sukhpal Ahluwalia said, "Too many UK businesses are still sitting on their hands when it comes to the business opportunity in India. The UK's foreign direct investment (FDI) in India in 2023 was around Pound 17 billion ( ₹ 1,46,100 crore). If this doesn't reach Pound 25 billion ( ₹ 2,92,500 crore) by the end of this year, UK businesses will have been missing a trick. I'm urging them to ramp up investment in India." "There are so many reasons that investing in India is a huge opportunity for UK businesses. India is growing rapidly, it has an increasingly urbanised consumer base, it has some of the most talented young professionals in the world, and the recent UK-India Free Trade Agreement provides a strong foundation for future growth," he added. "There is such a shared, deep history between the UK and India, yet I still see UK businesses investing too little in India. The global trade war is a wake-up call. Trump's tariffs, global uncertainty, and the ongoing trade war will focus many UK businesses' minds towards our long-standing, stable trading partners - and India is the foremost among them," Ahluwalia added. Ahluwalia is currently seeking to ramp up his investments in India and is on the lookout for growth opportunities across the automotive, tech, and real estate sectors. He invests through his family office in both private equity and venture capital opportunities. Currently based in London, Ahluwalia is one of the most influential Indian entrepreneurs in the UK. He is Executive Chairman of GSF Car Parts, the UK's fastest-growing car parts supplier, and founder of Dominus, a multi-billion-pound student accommodation and hospitality developer. He previously founded Euro Car Parts, Europe's largest car parts distributor. In 2024, he was recognised as Asian Businessperson of the Year at the Asian Achievers Awards. Over recent years, Ahluwalia has ramped up his business and philanthropic work in India and intends to spend significantly more time in the country moving forward. Ahluwalia said, "I have enjoyed spending more and more time in India over the last few years, and I look forward to ramping up that time further still over the coming years. But whilst I'm looking forward to returning to my homeland, I don't plan to hang up my business boots as I move into that next part of my life. "Instead, I view my role as being a bridge between the UK and India. I want to play a positive role in supporting activity between the two countries, and I will be directly investing myself too. There is so much more we can be doing together as countries. And I see that as part of my life's mission," Ahluwalia added. (ANI)
India Gazette
2 days ago
- Business
- India Gazette
"UK firms still sitting on their hands when it comes to Indian investment," says London-based Indian entrepreneur
London [UK], June 26 (ANI): Sukhpal Ahluwalia, a leading London-based Indian entrepreneur, has urged UK businesses to ramp up their investments in India dramatically. The comments come as Ahluwalia looks further to dial up his business interests in the country - and prepares to spend significantly more time in the country moving forward. Ahluwalia believes the global trade war has the potential to push the UK and India even closer together - and that UK businesses should now take advantage of the fast-growing, burgeoning economy in India as they seek to diversify away from other countries, notably China. Sukhpal Ahluwalia said, 'Too many UK businesses are still sitting on their hands when it comes to the business opportunity in India. The UK's foreign direct investment (FDI) in India in 2023 was around Pound 17 billion (Rs 1,46,100 crore). If this doesn't reach Pound 25 billion (Rs 2,92,500 crore) by the end of this year, UK businesses will have been missing a trick. I'm urging them to ramp up investment in India.' 'There are so many reasons that investing in India is a huge opportunity for UK businesses. India is growing rapidly, it has an increasingly urbanised consumer base, it has some of the most talented young professionals in the world, and the recent UK-India Free Trade Agreement provides a strong foundation for future growth,' he added. 'There is such a shared, deep history between the UK and India, yet I still see UK businesses investing too little in India. The global trade war is a wake-up call. Trump's tariffs, global uncertainty, and the ongoing trade war will focus many UK businesses' minds towards our long-standing, stable trading partners - and India is the foremost among them,' Ahluwalia added. Ahluwalia is currently seeking to ramp up his investments in India and is on the lookout for growth opportunities across the automotive, tech, and real estate sectors. He invests through his family office in both private equity and venture capital opportunities. Currently based in London, Ahluwalia is one of the most influential Indian entrepreneurs in the UK. He is Executive Chairman of GSF Car Parts, the UK's fastest-growing car parts supplier, and founder of Dominus, a multi-billion-pound student accommodation and hospitality developer. He previously founded Euro Car Parts, Europe's largest car parts distributor. In 2024, he was recognised as Asian Businessperson of the Year at the Asian Achievers Awards. Over recent years, Ahluwalia has ramped up his business and philanthropic work in India and intends to spend significantly more time in the country moving forward. Ahluwalia said, 'I have enjoyed spending more and more time in India over the last few years, and I look forward to ramping up that time further still over the coming years. But whilst I'm looking forward to returning to my homeland, I don't plan to hang up my business boots as I move into that next part of my life. 'Instead, I view my role as being a bridge between the UK and India. I want to play a positive role in supporting activity between the two countries, and I will be directly investing myself too. There is so much more we can be doing together as countries. And I see that as part of my life's mission,' Ahluwalia added. (ANI)
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
Trade pacts with US, EU, India may not boost short-term UK growth: S&P
The United Kingdom's trade agreements with the United States, the European Union (EU) and India will do little to boost economic growth in the short term as they are either too narrow, or, in the case of the UK-US trade deal, still leave exporters worse off than before, according to S&P Global Ratings. The US-UK agreement has not yet been implemented in full. When this will happen, and exactly what shape the agreement will take, are still uncertain. In addition, the agreement still leaves tariffs higher than they were before, at 10 per cent for most products, it noted. The UK's trade pacts with the US, the EU and India will do little to boost short-term growth as they are either too narrow, or, in the case of the UK-US one, still leave exporters worse off than before, S&P Global Ratings said. The US-UK pact has not yet been fully implemented; the UK-EU one is narrow in scope; and the UK-India one is smaller in terms of economic significance than the UK-EU deal. 'Even if the UK is slightly better off in terms of trade with the US than other countries, UK-US trade will still be lower than it would have been under the tariffs before April 2, 2025,' S&P Global Ratings said. The UK-EU agreement is narrow in scope, even if it suggests that the United Kingdom may have put Brexit aside in favour of cooperation. Finally, the country's trade agreement with India will give British exporters more options as they seek to diversify their trading partners. However, even if India is a fast-growing market, the UK-India trade deal is smaller in terms of economic significance than the UK's narrow deal with the EU, according to British Treasury estimate, i.e., £4.8 billion versus £9.0 billion in the long run. India is a smaller trading partner, buying only around 2 per cent of total UK goods exports in the past 12 months, compared with around 64 per cent for the EU and United States combined, S&P Global noted. The UK economy is weaker than it looks from the first quarter (Q1 2025) statistics and has shed 280,000 jobs in the past 12 months, it observed. Surveys point to subdued demand, especially in manufacturing, and consumers continue to save much more than they have historically. The Bank of England (BoE) will continue to take a gradual approach to cutting rates, as volatile economic data continue to point to elevated price pressures even though the labour market is cooling down. S&P Global expects one rate cut per quarter until February 2026, which should help investment and consumption rebound more quickly. The country's economy expanded by 0.7 per cent quarter on quarter in Q1 2025. Consumers have continued to lower their expectations for the economy. This is likely to be motivating higher savings than usual, preventing a stronger recovery in household spending. Retail sales dropped by 2.6 per cent in May 2025, reversing earlier yearly gains. The UK gross domestic product is likely to contract in the second quarter, reflecting the subdued trends and a drop-off in trade with the United States, as the new tariffs have now kicked in. Exports to the United States were already 31 per cent down month on month in April this year. Fibre2Fashion News Desk (DS)
New Indian Express
4 days ago
- Business
- New Indian Express
'Another blow to Indian diplomacy': Congress flays Centre amid ASEAN 'displeasure' over Goyal's remarks
NEW DELHI: The Congress on Tuesday slammed the government over the reported displeasure expressed by the ASEAN co-chair for the review of India FTA following Commerce Minister Piyush Goyal's 'B-Team of China' remark, and said it was "another blow" to Indian diplomacy. Congress general secretary in-charge communications Jairam Ramesh shared on X a media report which claimed that the ASEAN co-chair for the review of India FTA has expressed displeasure over Goyal's recent remarks, describing several countries in the region as a "B team of China." In his post on X, Ramesh said, "India has very close civilizational, cultural, economic, and political ties with the 10-nation ASEAN Group--Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. ASEAN, that came into being almost six decades back, has a combined GDP just slightly lower than that of India." The Union Commerce and Industry Minister dismisses them as the "B team of China", he said. "ASEAN now ticks him off. Indian diplomacy suffers yet another blow. This was needless," Ramesh added. Last week, speaking at the India Global Forum (IGF) session on UK-India Science, Technology and Innovation Collaboration at the Science Museum in London, Goyal had said, "There was a point of time 15 years ago when we were more focused on doing FTAs with countries who were our competitors. So if I am doing an ASEAN agreement, it really is silly because (that is) opening up my market to my competitors, many of whom have now become the B team of China." The Congress had slammed Goyal for his remarks against the India-ASEAN trade agreements, saying labelling these countries as "B team of China" is "irresponsible and insulting." In a statement, Congress spokesperson Anand Sharma had said Goyal's statement "belittling India ASEAN Trade Agreements is unwarranted, ill advised and unfortunate."
