Now Reading: UK trade pact draws Indian startups eyeing new market
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UK trade pact draws Indian startups eyeing new market
At least half a dozen Indian startups are planning to enter or have set up offices in the UK this year, driven by the India-UK free trade agreement that cuts tariffs on…
The Story in Brief
At least half a dozen Indian startups are planning to enter or have set up offices in the UK this year, driven by the India-UK free trade agreement that cuts tariffs on goods and eases worker mobility costs. Startups such as GoodMelts, Fynd, DevRev, and PaySmart are among those expanding, Mint reports. The Double Contribution Convention is expected to save Indian firms and workers over ₹4,000 crore in duplicate social-security contributions, with the exemption period extended to 60 months.
The FTA eliminates tariffs on nearly 99% of Indian exports to the UK, benefiting hardware and manufacturing-linked startups directly, while SaaS and fintech firms gain from enhanced services-market access. Heman Bharucha of London & Partners said discussions about startups moving to the UK are increasing. Prime Minister Narendra Modi set a goal to double bilateral trade, which stood at $56 billion in 2025, by 2030.
The Indian Opinion
The narrative that Indian startups only look West for capital or exits misses the point. This FTA lowers real costs, tariffs on goods and social-security payments, that hit small firms hardest. The test will be whether founders, who often chase US valuations, actually build UK operations beyond a marketing office. Watch the number of Indian startups filing for UK incorporation in the next six months: that will separate intent from action.
Source: livemint.com
This story was synthesised by AI from the source linked above.
