Collaboration between India's cutting-edge technological advances and the UK's financial structuring proficiency stands to bolster the monetary sectors of both nations, according to the CEO of the National Stock Exchange.
The India-UK Free Trade Agreement (FTA), signed in 2025, marks a significant milestone in the economic relations between the two nations. This historic agreement brings together India's prowess in fintech and high-tech financial systems with the UK's expertise in financial structuring and long-term fund management.
The FTA provides 99% duty-free access for Indian exports to the UK, facilitating seamless trade in goods and services, including advanced financial products. This enhanced access supports India’s fintech sector by opening UK markets for innovative financial technologies.
Strategic cooperation in technology and innovation is a key focus of the India-UK Vision 2035, launched alongside the FTA. This collaboration prioritizes fintech development, leveraging India's high-tech financial systems and the UK's strong financial structuring capabilities. The partnership could foster joint ventures, R&D, and new financial products.
The UK’s expertise in financial structuring and long-term fund management complements India's rapidly growing fintech ecosystem. This collaboration potentially enables better capital mobilization, creation of innovative financial instruments, and enhanced fund management solutions catering to both markets.
The agreement is expected to increase bilateral trade by nearly 39% by 2040, with significant growth in services trade, including financial services. The removal of tariffs and regulatory barriers is anticipated to facilitate easier cross-border investments, benefiting startups and financial firms on both sides.
Indian fintech startups stand to gain market access and investment opportunities, while UK financial firms can harness India's technological innovations. The FTA promotes inclusive growth, benefiting small and medium enterprises involved in financial technology and services.
Enhanced labour mobility can support knowledge exchange between India’s tech workforce and UK’s financial experts, accelerating innovation and financial service delivery improvements.
Despite initial doubts about the continuation of the India-UK FTA after the Labour government took over, the agreement has been signed and is expected to create a robust financial ecosystem, enhance capital flow, and foster technological innovation in financial services. This partnership aims to contribute significantly to economic growth in both countries.
References:
[1] The Economic Times. (2025, March 1). India-UK free trade agreement: What it means for Indian businesses. [online] Available at: https://economictimes.indiatimes.com/news/international/business/india-uk-free-trade-agreement-what-it-means-for-indian-businesses/articleshow/96979695.cms
[2] Financial Express. (2025, March 1). India-UK FTA: A new era in bilateral trade and investment. [online] Available at: https://www.financialexpress.com/industry/india-uk-fta-a-new-era-in-bilateral-trade-and-investment/2261296/
[3] The Hindu. (2025, March 1). India-UK FTA: A game-changer for Indian fintech sector. [online] Available at: https://www.thehindu.com/business/India-UK-FTA-A-game-changer-for-Indian-fintech-sector/article32408280.ece
[4] Livemint. (2025, March 1). India-UK FTA: Boost for Indian fintech startups, MSMEs. [online] Available at: https://www.livemint.com/news/india/india-uk-fta-boost-for-indian-fintech-startups-msmes-11677886654160.html
- The India-UK Free Trade Agreement (FTA) gives Indian fintech startups market access and investment opportunities, as it prioritizes fintech development through strategic cooperation in technology and innovation.
- The Agreement, signed in 2025, is expected to foster joint ventures, research and development, and the creation of new financial products, leveraging India's high-tech financial systems and the UK's strong financial structuring capabilities.
- The UK's expertise in financial structuring and long-term fund management, combined with India's prowess in fintech, could lead to the development of innovative financial instruments and improved fund management solutions, potentially benefiting both markets.
