UK businesses plan to expand to India, says Grant Thornton
July 18, 2023
New research from Grant Thornton UK LLP’s business outlook tracker found that India is a core focus international growth market for the UK mid-market.
The firm’s tracker, which surveyed 608 mid-sized businesses in the UK, revealed that over one third (36%) of UK business leaders are planning to invest more in growing internationally in the next six months. Many of these businesses have their sights set on India, with 73% of respondents identifying the country as a focus international growth market.
The mid-market is already very familiar with doing business in India, with almost two-thirds (64%) of the businesses surveyed already having a business presence established. Of these, almost all (94%) have plans to expand their presence, with the majority having plans to do so within the next two years.
The opportunities that a Free Trade Agreement (FTA) would offer are also evident to the mid-market. As negotiations continue, almost three quarters (72%) of respondents agree that an FTA with India is likely to encourage their business to explore more opportunities there.
As India’s economy continues to grow in strength, the mid-market sees many benefits to establishing a business presence in this market, including a fast growing economy, a large working age population and a large consumer market.
However, while establishing a business presence in an international market can offer numerous opportunities, it also presents challenges. The research identified that high tariffs and protection policies and infrastructure are among the biggest barriers for the mid-market to building a business presence in India.
Anuj Chande OBE, head of South Asia business group, Grant Thornton UK LLP, said: “With the uncertain geopolitical situation at the moment, 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.
“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.”
Chande continued: “While our research has identified the biggest challenges many businesses face when setting up in India – as there are challenges looking to grow internationally anywhere in the world – there is support available. 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.”
[Accountancy Today]
