A month on from the UK signing a free trade agreement with India, key sectors of the UK economy are targeting India’s growing market, with opportunities expanding for small business supported by finance.
The new trade deal was signed following three years of negotiation, and lowers the barriers to trade of an array of goods, as well as services. India, currently the 4th largest economy in the world, is predicted to rise into third place by 2028.
As the UK currently sits at 6th place with a population a twentieth of the size of India, the FTA will strategically strengthen its economies and partnership. Post-Brexit and in the face of trade tariffs being put in place by the United States, the agreement is a positive step in the UK’s need for stronger international trade links.
UK business can now galvanise on the opportunity for easier trade with India. The country’s imports demand is predicted to increase by 144% by 2035. Thus, the deal is expected to benefit the UK by increases to wages, gross domestic product (GDP) and bilateral trading.
Around 72% of UK businesses, in a recent survey, reported feeling encouraged by the deal to explore opportunities. For SMEs to benefit from the access to trade with India, finance companies may be able to offer funds to bolster expansion and investment in shifting to international imports and exports.
At AJL Finance, we provide SME business loans to companies looking to expand their market beyond the UK. Reach out to us today to discover how we can help your company.
