- Wednesday, April 23, 2025
A fresh study from Grant Thornton UK LLP’s Business Outlook Tracker has said that the South Asian nation is a crucial international growth market for the UK mid-market.
By: Shubham Ghosh
A NEW research from Grant Thornton UK LLP’s Business Outlook Tracker has revealed that India is a crucial international growth market for the UK mid-market. The finding has come while negotiations continue over for a UK-India Free Trade Agreement (FTA).
The Grant Thornton Business Outlook Tracker is a bi-monthly survey of mid-market businesses.
The firm’s Business Outlook Tracker, which surveyed 608 mid-sized businesses in the UK, finds that 36% of UK businesses are planning to invest more in growing internationally over the next six months and many of these businesses have eyed India, with 73 per cent of respondents calling the country a focus international growth market, a release from the company said.
The mid-market is already familiar with doing business in India, with 64 per cent of the businesses surveyed already having an established presence. Of these, 94 per cent have plans to expand their presence, with the majority having plans to do so in the next two years.
The opportunities that an FTA would offer are also evident to the mid-market. As negotiations continue, 72 per cent of respondents agree that a free-trade deal with the South Asian nation is likely to encourage their business to explore more opportunities on its soil, the Grant Thornton press release added.
As India’s economy continues to grow in strength, the mid-market sees many benefits to establishing a business presence in this market. The top three benefits identified by the research are:
· A fast growing and stable economy
· A large working age population
· A large consumer market
However, while establishing a business presence in an international market can offer numerous opportunities, it also presents challenges. The biggest barriers for the mid-market to building a business presence in India identified by the research are:
· High tariffs and protectionist policies
· Infrastructure
· Ease of doing business
Anuj Chande OBE, head of South Asia Business Group, Grant Thornton UK LLP, said, “India is now the fifth largest economy in the world and is predicted to become the third largest by 2030. It therefore presents a huge opportunity for growth for businesses in the UK.
“As the country is only set to continue to grow, it is an excellent time for both those with an existing presence, and those looking to India for the first time, to be exploring potential opportunities in this market. India offers a stable and certain economic environment for investors and businesses, with, not only a fast-growing economy, but also a large working age and consumer population.”
Chande also said that the anticipated UK-India FTA should help propel the two countries’ relationship and provide an excellent platform for further investment.
“An FTA should reduce tariffs and duties to allow for a more level playing field for overseas businesses and give greater access to a large and fast-growing market. It should also allow for the relaxation of certain regulations and help improve the ease with which businesses in the UK can look to do business with, or within, India.” he added.
The top official said while the research has identified the biggest challenges that many businesses face when setting up in India, support is also available for those seeking a business mission in India.
“The department for business and trade provides support to those seeking to trade or invest in India, while firms, such as ours, can also provide tailored support for businesses exploring new markets,” he added.
