UK businesses are increasingly viewing India as a vital growth market, with 72% now considering it central to their international strategies, up from 61% last year, largely driven by the recent Free Trade Agreement (FTA).

Despite only 28% of UK firms currently operating in India, a significant 73% of those without a presence plan to establish operations there, with 13% aiming to do so within the next year, highlighting strong future expansion intentions.

Indian firms are equally motivated to expand into the UK, with 99% planning growth and nearly 90% seeking to establish a presence, indicating a mutual momentum in bilateral trade.

In the service sector, the pact will open new opportunities for Indian IT, healthcare, financial, and professional service providers in the UK, easing the movement of skilled professionals and recognition of qualifications.

The FTA is expected to simplify business setup, lower operating costs, and facilitate talent mobility, especially benefiting sectors such as IT, finance, and consulting, and fostering collaboration in innovation and digital governance.

This agreement aims to reduce tariffs and regulatory barriers, with duty-free access for about 99% of Indian exports, including textiles, pharmaceuticals, and automotive parts, boosting India's export potential.

Experts believe the FTA will significantly boost India's manufacturing and service exports, attract UK investments into key sectors, and particularly benefit MSMEs and labor-intensive industries.

The agreement is projected to help double bilateral trade to USD 120 billion by 2030 by easing tariffs and regulatory barriers for services and investments, according to industry leaders.

UK firms acknowledge challenges such as regulation, foreign exchange controls, infrastructure gaps, and market fragmentation, which they need to navigate to capitalize on new opportunities.

Despite these hurdles, the trade pact is seen as a strategic move to unlock substantial opportunities in sectors like IT, finance, and healthcare, fostering long-term growth.

Recent UK trade delegations to Mumbai emphasize the importance of local insight, adaptability, and long-term partnerships, with government support playing a crucial role in fostering successful expansion.

UK companies are driven by India's large, growing economy, vast consumer market, and access to skilled talent, with 65% citing economic momentum and 60% highlighting market size as key factors.

The desire to tap into India's large, qualified workforce is strong among UK firms, with 53% emphasizing this as a major attraction for sectors like tech, consulting, and professional services.