Will this trade deal result in British companies doing more manufacturing and investing in India, or are you expecting it to mostly increase exports to India?
I think it will do both, but the bigger story is investment.
The UK-India Comprehensive Economic and Trade Agreement (CETA) creates a more predictable and attractive environment for businesses on both sides. For British companies already operating in India, it gives them greater confidence to expand their presence, invest for the long term and participate in India’s growth story. For companies that are not yet in the market, it reduces barriers and makes India a more accessible destination.
India is the world’s fastest growing major economy with ambitious plans around infrastructure, manufacturing, digitalization and energy transition. They are areas where British companies bring expertise, capital and professional services. As a result, I expect to see strong trade flows as well as increased UK investment in India.
Equally, during my recent visit, I saw first-hand how Indian companies are keen to continue expanding in the UK. At the FDI Fintech Roundtable chaired by me in Mumbai, many Indian Fintech companies expressed their excitement at the prospect of investing in the UK.
India is already one of the largest sources of investment projects in the UK, and I expect the agreement to accelerate that trend.
How far are the two countries from signing a Bilateral Investment Treaty (BIT)? Can you tell us what are the major obstacles currently facing these negotiations?
Both the UK and India recognize the value of high-quality bilateral investment treaties and have a shared desire to strengthen investor confidence and unlock additional capital flows.
However, these are complex negotiations and it would not be appropriate for me to speculate on the timeline or discuss the details of ongoing government-to-government discussions.
From a business perspective, the priority is clear: investors in both countries benefit from transparency, legal certainty and a predictable framework. A successful agreement that gives confidence to both parties would be a valuable addition to the wider UK-India economic partnership.
The two countries set up a UK-India Infrastructure Financing Bridge in September 2024. A year after it started there were no projects in the pipeline and you said more work had to be done. In particular, projects in India need to be de-risked to attract investment from the UK. In almost two years, has the investment climate in India changed and what more needs to be done?
Progress has definitely been made. On my recent visit to India, I had the privilege of visiting the Versova Sea Link as part of the UK-India Infrastructure Financing Bridge (UKIIFB), which is a concrete example of the type of project in which UK companies can invest.
So far, UKIIFB has brought together top infrastructure financing experts from the UK and India to make Indian projects more investable, thereby unlocking global capital to help India achieve its infrastructure target of $4.5 trillion by 2030.
I am incredibly proud to have launched UKIIFB with India almost two years ago. We continue to work closely with state-level governments in India to translate ambition into implementation.
In the UK, we recently hosted an event with ICICI Bank, convening senior British institutional investors and industry leaders to help create investor-ready projects and strengthen market connectivity between India and global capital markets.
Generally, the Indian government has demonstrated a strong commitment to investment in infrastructure and has introduced a number of reforms aimed at improving the ease of doing business and attracting long-term capital. Recent measures regarding asset monetization, insurance liberalization and infrastructure financing indicate serious intent. India’s sustained public investment program has also created a large pipeline of opportunities.
The purpose of the UK-India Infrastructure Financing Bridge has never been to simply identify projects. It is about bringing together the expertise of both countries to help make projects investment ready and connect them to the global pool of capital. That work remains important and I believe the opportunity remains significant.
The UK-India Infrastructure Financing Bridge reflects the City of London Corporation’s commitment to supporting India’s global development ambitions.
What opportunities does CETA create for companies in the financial sector that did not exist before and what challenges remain?
This agreement is important as it creates a strong platform for growth in financial and professional services, which are central to both our economies.
The UK is the world’s largest net exporter of financial services and London remains a global hub for banking, insurance, asset management, capital markets and fintech. The agreement will help deepen connectivity between our financial ecosystems and create new opportunities for collaboration.
Particularly promising sectors include insurance, reinsurance, sustainable finance, fintech, asset management and capital markets. India’s decision to raise foreign investment limits in insurance opens up meaningful opportunities for closer co-operation between British and Indian companies.
The agreement should encourage more Indian companies to utilize London’s capital markets and financial expertise as they pursue international growth.
Challenges undoubtedly remain. Businesses will welcome continued progress on market access, regulatory complexity, data flows, mobility of professional services and reducing compliance burdens. CETA is an important milestone, but it should be seen as the beginning of a deeper financial partnership rather than the end of the journey.
What can you say to Indian investors, exporters or those looking to set up companies in the UK who are nervous about frequent changes in Prime Ministers and policy instability?
I would say investors should look beyond the everyday politics and focus on long-term fundamentals.
The UK has one of the world’s most established legal systems, respected independent institutions, deep capital markets and a long track record as a stable destination for international investment. Governments keep changing, but those foundations remain the same.
Indian companies clearly recognize this. India has been one of the most important sources of investment into the UK for many years and hundreds of Indian-owned companies are successfully expanding across the UK.
The UK is open, competitive and internationally connected. We remain Europe’s leading destination for financial services investment and one of the world’s leading centers for innovation, technology and global finance.
Incoming British Prime Minister Andy Burnham wants to spread economic activity evenly across the UK rather than concentrating it in London. What could this mean for Indian companies and investors eyeing the UK market over the next three years?
We recently announced a new digital platform called InvestConnect, which will connect global institutional investors, including India, to infrastructure opportunities across UK countries and territories.
So far, Cornwall Council, the Scottish Government and Liverpool City Region have all signed up. In short, this will make it easier for Indian investors to take advantage of opportunities across the UK
Ultimately, London competes for city regions, and the UK economy wins when sustainable growth is shared across the country. Economic development in London or the regions is a wrong choice. We need both to succeed.
Let’s not forget that the UK’s financial and business services sector is one of our greatest national assets. It employs 2.4 million people, two-thirds of whom are outside London. The region generates investment, tax revenue and innovation in every region of the country, not just London. The city of London plays an important role in this. We generate £109 billion, which is 4% of GVA. The city contributes about 12% of all UK tax receipts, which helps fund public services.
India has recently signed trade agreements with several countries and blocs, including the European Union and EFTA. What makes the UK an attractive destination for Indian companies and investment? In other words, why London and why the UK?
The answer is that the UK offers something that very few countries can: global reach.
London is the world’s leading international financial centre. It offers access to capital, investors, professional services, insurance expertise, legal certainty and international networks that are difficult to replicate elsewhere.
For Indian companies looking to expand globally, London provides a reliable platform from which to raise capital, manage risk, attract investment and grow internationally. Whether you are a leading infrastructure developer, fintech company, renewable energy business or a fast-growing technology firm, London offers access to an uniquely deep ecosystem.
The UK also benefits from extraordinary people-to-people connections. Our 1.9 million strong Indian diaspora creates personal, cultural and business relationships that underpin business trust and investment.
Brexit has not changed London’s role as a global city. If anything, it has strengthened the UK’s focus on building economic partnerships with high-growth markets around the world. The UK-India CETA is a strong example of that ambition.
So when I speak to Indian businesses, my message is simple: if you want to raise equity, come to London; If you want access to world-class insurance and risk management, come to London; If you want global investors, international expertise and a reliable business environment, come to the UK. The UK is one of the best places in the world to do business, and we want Indian companies to be at the heart of our future growth story.
