Exporting to India
Demand for UK goods
UK exports to India increased in value by nearly a fifth (19.3%) between 2017 and 2018, amounting to £8 billion in total. Of these, nearly 70% were goods, with total goods exports from the UK to India totalling £5.5 billion in 2018 (ONS, 2018).
Strong links with the UK
India and the UK have strong ties through people, ideas, institutions, language and technology. These common links help the establishment of successful partnerships between UK and Indian businesses of all sizes and in all sectors.
Young and growing consumer base
India is a huge and growing market seeing a sustained period of strong growth. There is a large youth demographic and a rising, more affluent middle class.
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in India have identified particular opportunities for UK businesses in the following sectors.
The Indian start-up ecosystem has seen significant evolution in recent years. Start-ups are using emerging technologies such as social, mobility, analytics and cloud (SMAC), artificial intelligence (AI), machine learning and the internet of things to solve key challenges in fields such as healthcare, education and financial inclusion.
The telecoms market is particularly attractive to UK exporters given the diversity of opportunities. In addition to the telecoms equipment market, there are potential opportunities for companies offering cutting-edge technology and services that will cater to the 5G market. This includes analytics, AI and cyber security service providers.
UK-India Tech Partnership
The India-UK tech partnership aims to bring together the best minds working in tech in order to support innovation and technology, unlock its future potential and deliver high-skilled jobs and sustainable economic growth. This pioneering partnership has strong support in both countries.
India has a rapidly developing and large fintech sector with a transaction value forecast to reach $73 billion in 2020, growing at a five-year compound annual growth rate (CAGR) of 22% (KPMG, 2016).
Demand is increasing in India for digital onboarding, lending, wealth management, and technology around regulation, insurance and blockchain. This demand offers huge opportunities for UK exporters.
High rates of return
India offers one of the highest rates of expected return on fintech projects – 29% compared with the global average of 20% (PwC, 2017).
Market size and potential
India is the fourth-largest automobile market in the world after China, the USA and Japan. There are considerable opportunities for UK companies in the manufacture of tractors, two-wheelers, buses, cars and commercial vehicles.
Luxury car market
Leading luxury car manufacturers BMW and Mercedes-Benz recorded record sales in India in 2018 and the luxury car market is expected to grow considerably over the next few years. India is a viable outsourcing hub for UK exporters, offering low production costs and increasing domestic demand.
India’s government has announced an ambitious target for all new vehicles to be electric by 2030. It aims to provide grants worth up to £12 million for electric vehicle procurement (Invest India, 2019).