India & UK Forge Path for Enhanced Economic Cooperation with Advancements in Free Trade Agreement Talks

By: WE Staff | Wednesday, 5 July 2023

The potential advantages of the proposed free trade agreement (FTA) between India and the UK for women-owned and women-led small and medium companies (SMEs) have been highlighted by UK Business and Trade Secretary Kemi Badenoch.

Badenoch reaffirmed the significance of trade and gender equality cooperation in response to a report by the House of Commons Business and Trade Committee, which examines government policy on foreign trade.

The chapter on trade and gender equality, which aims to increase the involvement of women-owned and women-led SMEs in international trade, has officially been closed, according to Badenoch. The addition of this chapter is anticipated to increase the competitiveness of such businesses and provide them chances to prosper.

Badenoch expressed optimism that the FTA would encourage companies of all sizes and from every region in India and the UK to take advantage of the agreement when asked about ways to mitigate potential negative effects of trade liberalisation on micro, small, and medium enterprises (MSMEs) and rural areas.

The UK Secretary emphasised the importance of SMEs to both economies, saying, "We have provisionally agreed on a chapter that ensures SMEs can understand and navigate the systems of the other country and leverage the numerous advantages of the comprehensive FTA."

Data from the UK government indicates that bilateral commerce between India and the UK hit £36 billion in 2022, a rise of 45% from the year before. A half million jobs are supported by this strong commercial cooperation in both countries. By 2030, the UK wants to treble its commerce with India thanks to the proposed trade deal.

The value of UK imports from India in 2022 was $20.8 billion, a 35% increase from 2021. India, the 12th largest trading partner for the UK, contributed 2.1% of all commerce. The 11th round of FTA discussions is planned to begin in July after the conclusion of the 10th round in June.

99.9% of all enterprises in the UK are SMEs, making up a major component of the commercial environment. In early 2022, the UK had about 5.5 million SMEs, or 5.47 million small businesses and 35,900 medium-sized businesses, compared to about 7,700 huge companies, according to official statistics.

The emphasis on supporting women-owned and women-led SMEs as the India-UK FTA discussions move forward emphasises the commitment to promoting inclusive economic growth and gender equality. These businesses have a chance to prosper under the proposed agreement and contribute to the expanding commercial relationship between the two countries.