Britain and India are charging ahead with a massive £40.9 billion trade deal, with 26 chapters already wrapped up. Commercial investments are flowing both ways – HSBC’s expanding to 34 Indian cities while Indian tech firm Mphasis plants roots in London. Still, thorny issues like carbon taxes and whisky duties need solving. With Modi back in power and high-level talks ongoing, this economic partnership could reshape both nations’ futures.
A long-awaited trade deal between Britain and India is inching closer to the finish line – though not without its share of drama.
With most of the proposed 26 chapters wrapped up by spring 2024, both nations seem keen to put pen to paper.
But politics, as usual, got in the way.
Elections in both countries hit the pause button, leaving negotiators twiddling their thumbs.
Recent trade data reveals total bilateral trade reached £40.9 billion in the year to Q3 2024, showing strong momentum.
The numbers tell quite a story.
A fresh £400 million commercial package is already turning heads, with £128 million in new deals and £271 million in confirmed agreements.
British banks aren’t just dipping their toes in – they’re diving headfirst into India’s market.
HSBC’s bold expansion from 14 to 34 cities shows they mean business, while Barclays dropped a cool £210 million into their Indian operations.
International trade agreements significantly influence domestic economic growth and market dynamics.
But it’s not all smooth sailing.
Sticky issues remain: carbon taxes, whisky duties, and visa rules for Indian professionals are still causing headaches.
And don’t forget the electric vehicle debate – apparently, deciding how many cars can cross borders is harder than it sounds.
The 150% duty on Scotch remains a significant hurdle to overcome.
The tech sector’s heating up too.
Indian IT firm Mphasis chose London for its quantum computing center and opened shop in Nottingham, creating 100 jobs.
Meanwhile, Paytm’s eyeing the UK market, ready to shake up digital finance.
Post-elections, with Modi back in power and new UK leadership in place, both sides are talking tough about wrapping things up.
Modi’s team even threw down a 100-day challenge to seal the deal.
High-level phone calls and ministerial visits keep the pot stirring, while April 2025’s Economic and Financial Dialogue put the FTA front and center.
The stakes are high, and both countries know it.
Finance, technology, and education top the priority list for cooperation.
With leadership finally stable on both sides, experts think the finish line might actually be in sight.
But in the world of international trade deals, nothing’s certain until the ink is dry.
