UK-India Trade Flourishes In 2024 Amid Payment Surge, Renewed FTA Talks

London: Business activity between the UK and India experienced significant growth in 2024, with the value of payments received by British clients from India increasing by 121 per cent, according to recent data from HSBC UK. The bank highlighted this expansion through its cross-border business support in the India-UK trade corridor, showing substantial year-on-year growth in payments and client referrals.

In the first nine months of 2024, payments from HSBC UK business clients to India rose by 32 per cent, while the bank recorded a 36 per cent increase in new business client referrals from HSBC India. This surge underscores the growing trade ties between the two nations.

"Our data demonstrates that UK-India business relations are not only robust but also rapidly strengthening," HSBC International Subsidiary Banking Head UK Cora McLaren said. She emphasized the bank’s century-long association with India and its commitment to facilitating business expansion in both countries.

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The data release coincides with preparations by the UK and Indian governments to resume Free Trade Agreement (FTA) negotiations in early 2025. Prime Ministers Keir Starmer and Narendra Modi agreed to restart talks during their meeting at the G20 Summit in Brazil last month.
Richard McCallum, Group CEO of the UK India Business Council (UKIBC), welcomed the renewed commitment.

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"As HSBC’s data indicates, UK-India trade is accelerating. An FTA will further boost this growth," he noted, highlighting India’s appeal as a top investment destination, strategic supply chain partner, and source of goods and services.

According to the UK Department for Business and Trade (DBT), total trade in goods and services between the two countries reached GBP 42 billion in the four quarters ending in 2024. The FTA negotiations, initiated in January 2022, paused after 14 rounds due to general elections in both nations. The upcoming resumption of talks is expected to set a clear timeline, promising enhanced trade prospects.