A new research has revealed that many mid-sized businesses in the UK set their sights on India for international expansion.
The Business Outlook Tracker by Grant Thornton UK has said that over one third (36 ) of UK businesses are planning to invest more in growing globally in the next six months.
It surveyed 608 mid-sized businesses as part of the study and 73 per cent of respondents identified India as a focus international growth market, a statement said.
According to the research, almost two-thirds (64 per cent) of the businesses surveyed already have a presence in India.
Of these, almost all (94 per cent) have plans to expand their presence, with the majority having plans to do so within the next two years.
The study further said that almost three quarters (72 per cent) of respondents agree that a Free trade agreement (FTA) with India is likely to encourage their business to explore more opportunities.
“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. The anticipated UK-India FTA should also help propel the relationship between the two countries further and provide an excellent platform for further investment,” said Anuj Chande OBE, head of south Asia Business Group, Grant Thornton UK LLP.
“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.”
The top three benefits identified by the research while expanding in India are fast growing and stable economy, large working age population and the large consumer market.
High tariffs and protectionist policies, infrastructure and ease of doing business were identified as potential challenges in the study.
Chande added, “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 and other firms provide support to those seeking to trade or invest in India.”
