Business interactions between India and the UK experienced remarkable growth in 2024, with British clients receiving payments from India increasing by an impressive 121%, according to data from HSBC UK. The multinational bank showcased these figures as part of its initiatives to aid businesses functioning along the India-UK trade corridor.
The data, derived from client referrals and payments, indicated substantial year-on-year growth. From January to October 2024, payments made by HSBC UK's business clients to India rose by 32%. Moreover, the bank noted a 36% increase in new business client referrals from HSBC India compared to the same time last year.
The third-quarter advance tax payment deadline of December 15 at 11:30 PM is reflected in the data. An official pointed out that once bank transfers are finished, the final number can vary a little.
This increase illustrates the strengthening economic relationship between the two nations and underlines the growing business potential within this important trade corridor. "Our data shows that business between the UK and India is not only strong, it's getting even stronger, and the opportunities for expanding businesses in India are huge," said Cora McLaren, Head of International Subsidiary Banking at HSBC UK.
A banking executive pointed out the strengthening of bilateral trade connections between India and the UK, indicating that the relationship benefits both sides. Indian businesses are increasingly making their mark in the UK, particularly in the pharmaceutical sector, where India continues to hold a prominent position globally. This data aligns with the upcoming efforts by both the UK and Indian governments to restart negotiations for a Free Trade Agreement (FTA) in 2025. This initiative follows an agreement between Prime Ministers Keir Starmer and Narendra Modi to reinitiate discussions during their meeting at the G20 Summit in Brazil last month.
According to the UK Department for Business and Trade (DBT), the total trade in goods and services between the two nations reached GBP 42 billion in the year ending in 2024. This amount is anticipated to rise significantly once an FTA is implemented. Negotiations for the agreement commenced in January 2022 but were suspended after the 14th round earlier this year due to general elections in both countries. The discussions are expected to resume next year, although an official timeline for the process has not yet been established.
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