EU-India Free Trade Agreement: A New Horizon for Startups and SMEs

India’s External Affairs Minister, Dr. S. Jaishankar, embarked on a significant six-day visit to the United Kingdom and Ireland starting March 4, 2025. This high-profile diplomatic trip aims to strengthen bilateral ties, advance trade negotiations, and address pressing global issues. With key meetings, consulate inaugurations, and discussions on the India-UK Free Trade Agreement (FTA) on the agenda, here’s a detailed look at what to expect from Jaishankar’s visit and its implications for India’s international relations.Strengthening Ties with the UK: Focus on the India-UK FTAJaishankar’s visit to the UK, spanning March 4-6 and March 8-9, kicks off with high-level talks in London. A major highlight is his meeting with UK Foreign Secretary David Lammy, where the spotlight will be on the recently relaunched India-UK Free Trade Agreement negotiations. Launched in January 2022, the FTA aims to boost the £41-billion annual bilateral trade partnership between the two nations. Key sectors like pharmaceuticals, financial services, and technology are expected to benefit, though challenges remain, including disagreements over market access and tariff reductions.During his stay, Jaishankar will also address the prestigious Chatham House think tank, offering insights into India’s global role. Additionally, he is set to inaugurate new Indian consulates in Belfast and Manchester—moves announced by Prime Minister Narendra Modi at the G20 Summit in Brazil in November 2024. These consulates will enhance India’s diplomatic presence in the UK, facilitating better services for the Indian diaspora and fostering people-to-people connections.For businesses eyeing opportunities under the India-UK FTA, focusing on sectors like technology and pharmaceuticals could yield early advantages once the agreement is finalized. Stay updated on negotiation outcomes for strategic planning.Deepening India-Ireland Relations: Economic and Diplomatic MilestonesFrom March 6-7, Jaishankar will travel to Ireland, marking the highest-level visit since PM Modi’s trip to Dublin in 2015. His agenda includes meetings with Irish Foreign Minister Simon Harris and other officials, alongside engaging with the Indian diaspora. A significant outcome to watch for is the signing of a Memorandum of Understanding (MoU) for a diplomat exchange program, as reported by The Hindu. This initiative will enhance diplomatic collaboration between the two nations.Another key development is the establishment of the India-Ireland Joint Economic Commission, aimed at boosting economic cooperation. With bilateral trade between India and Ireland reaching €16 billion in recent years, this commission could pave the way for deeper ties in technology, trade, and investment. Indian companies like Wipro, TCS, and Infosys, already entrenched in Ireland, stand to gain from improved market access within the European Union.Indian professionals and students in Ireland—numbering around 40,000 NRIs and 10,000 students—can leverage this visit to explore new opportunities in education and employment as ties strengthen.Geopolitical Context: Navigating Global ChallengesJaishankar’s visit comes amid a shifting global landscape, with Europe intensifying efforts for peace in the Russia-Ukraine conflict and India maintaining its stance on dialogue-based resolutions. India’s neutral yet proactive approach—highlighted by PM Modi’s recent talks with European Commission President Ursula von der Leyen—will likely feature in discussions with UK and Irish leaders. This visit underscores India’s growing role as a global player balancing ties with the US, Europe, and Russia.What to Expect from Jaishankar’s VisitFTA Progress: While a final deal may not be signed during this visit, expect announcements on negotiation milestones, offering clarity for businesses and investors.Consulate Openings: The Belfast and Manchester consulates will improve visa services and support for the Indian community in the UK, signaling India’s commitment to its diaspora.** Ireland Breakthroughs:** The MoU and Joint Economic Commission could set the stage for Ireland to become a strategic gateway for India into the EU market.Global Messaging: Jaishankar’s Chatham House address will reinforce India’s stance on peace, sovereignty, and its rising influence in international affairs.Follow official statements from the Ministry of External Affairs (MEA) and Jaishankar’s social media updates for real-time insights into outcomes that could impact trade, travel, or education opportunities.Why This Visit MattersJaishankar’s trip to the UK and Ireland is more than a diplomatic formality—it’s a strategic move to cement India’s economic and geopolitical footing in Europe. For the UK, the FTA represents a post-Brexit opportunity to deepen ties with a fast-growing economy. For Ireland, it’s a chance to elevate its partnership with India beyond shared democratic values into tangible economic gains. As India navigates complex global dynamics, this visit could set the tone for future engagements with Western nations.---Join the exclusive network for leaders driving growth and partnerships in tech and science - www.startupeuropeindia.net

India's recent strides in reducing extreme poverty to negligible levels, as highlighted in a 2025 article from The Economist titled "India has undermined a popular myth about development", mark a significant shift in global development narratives. This survey note delves into the data, policies, and implications, providing a comprehensive analysis for researchers, policymakers, and lay readers interested in development economics.Background and ContextThe article, published on February 27, 2025, and featured in the Finance & economics section of the March 1, 2025, print edition under the headline “Ploughing its own furrow,” suggests that India has challenged a popular myth about development. While the specific myth isn't detailed in accessible snippets, the context points to the notion that extreme poverty is persistent and difficult to eradicate in large, developing nations. This is supported by the article's mention that "extreme poverty in the country has dropped to negligible levels," aligning with broader discussions on India's poverty reduction trajectory.Defining Extreme PovertyExtreme poverty, as defined by the World Bank, is living on less than $2.15 per day in 2022 purchasing power parity (PPP) terms, reflecting severe deprivation in basic needs. This metric is crucial for international comparisons and tracking progress toward global development goals, such as the United Nations' Sustainable Development Goals.Data on Poverty ReductionHistorical data from the World Bank indicates that India's extreme poverty rate was 22.5% in 2011, affecting approximately 295 million people, and decreased to 10.2% by 2019, impacting about 140 million. More recent estimates, such as those from a 2024 Brookings Institution article titled "India eliminates extreme poverty", suggest that by 2025, official data confirms the elimination of extreme poverty, with the rate now negligible. This is further supported by the National Multidimensional Poverty Index: A Progress Review 2023 from the United Nations Development Programme, which reports that 135 million people escaped multidimensional poverty between 2015-16 and 2019-21, with rural areas seeing the fastest decline from 32.59% to 19.28% National Multidimensional Poverty Index: A Progress Review 2023.| Year  | Extreme Poverty Rate (%) | Estimated Population in Extreme Poverty (Millions) ||--------|--------------------------|------------------| 2011  | 22.5           | ~295                       || 2019  | 10.2           | ~140                       || 2025  | Negligible        | <1% (assumed based on recent reports)       |This table summarizes the trend, highlighting the significant reduction and the projected negligible levels by 2025, based on the Brookings claim.Factors Contributing to Poverty ReductionSeveral interrelated factors have driven India's success, as evidenced by various reports and government initiatives:1. Economic Growth and Structural Changes:  - India's GDP growth averaged 6-7% annually, driven by sectors like services (now nearly 50% of GDP, as per The India Forum in 2024) and technology, creating jobs and raising incomes. This growth, particularly post-1991 liberalization, has been crucial, though manufacturing's share remained stagnant, per Poverty in India Over the Last Decade.2. Government Policies and Programs:  - Infrastructure Investment: Enhanced roads, railways, and ports have improved connectivity, facilitating economic activity. The Economic Survey 2022-23 highlights significant investments in infrastructure Economic Survey 2022-23  - Social Safety Nets: The National Rural Employment Guarantee Act (NREGA) guarantees 100 days of wage employment to rural households, with over 5 billion person-days of employment generated since inception, according to government reports.  - Direct Benefit Transfers: Programs like the Pradhan Mantri Jan Dhan Yojana (PMJDY) have opened over 400 million bank accounts, reducing financial exclusion, as noted in the 2023 Economic Survey.3. Access to Basic Services:  - Electricity: The Saubhagya scheme aimed for universal electrification, with significant progress reported, improving productivity and living standards.  - Water and Sanitation: The Swachh Bharat Mission, launched in 2014, constructed over 100 million toilets, reducing open defecation and improving health outcomes, as per the 2023 Multidimensional Poverty Index report.  - Healthcare: The National Rural Health Mission expanded healthcare access, particularly in rural areas, contributing to reduced infant mortality and improved health indicators.4. Digitalization and Financial Inclusion: - Digital payment systems like the Unified Payments Interface (UPI) have revolutionized transactions, with over 40 billion transactions in 2023, enhancing economic participation. PMJDY's success in opening accounts has been pivotal, with data from the Reserve Bank of India showing increased banking penetration. Challenging the Popular MythThe popular myth that India has undermined appears to be the belief that extreme poverty is intractable in large, developing countries, often attributed to population size, diversity, and structural challenges. India's success, with a population of over 1.4 billion, challenges this assumption, suggesting that with targeted policies, even the most daunting development goals can be met.Additionally, it undermines the notion that development requires a specific governance model, such as autocracy, which some argue is necessary for rapid decision-making. India's democratic system, combined with a mixed economy, has shown that inclusive growth is possible, contradicting myths highlighted in discussions like *The Myth of Democratic Recession* from the Journal of Democracy in 2015 The Myth of Democratic Recession. This is an unexpected insight, as many global observers assumed only authoritarian regimes could achieve such rapid poverty reduction, as discussed in Democracy does not cause growth from the Brookings Institution in 2016.Controversies and ChallengesWhile the narrative is positive, controversies exist around poverty measurement methods. Some, like Poverty in India Over the Last Decade from The India Forum, caution that until unit-level data is analyzed, claims of eliminating extreme poverty may be premature, especially given data-related controversies around the National Statistical Organisation's surveys. Additionally, critics argue that the $2.15 poverty line might be too low, with Five myths about India's poverty from McKinsey in 2014 suggesting that 56% of Indians lack means for basic needs, challenging official rates Five myths about India's poverty.Implications for Global DevelopmentIndia's achievement serves as a model for other developing nations, particularly in demonstrating that democracy and mixed economies can drive poverty reduction. It also highlights the importance of inclusive policies, such as digitalization and financial inclusion, which can be adapted globally. As noted in India Overview: Development news, research, data from the World Bank in 2024, India's aspiration to achieve high-income status by 2047 will need to build on these gains, focusing on climate-resilient and inclusive growth India Overview: Development news, research, dataIndia's conquest of extreme poverty by 2025, reducing it to negligible levels, is a significant development breakthrough, challenging the myth of its persistence in large, developing countries. Driven by economic growth, government initiatives, and improved access to services, this success underscores the potential for diverse development paths. As global development discourse evolves, India's experience offers valuable lessons, emphasizing the need for tailored, inclusive strategies to build a more equitable world.---Join the exclusive network for leaders driving growth and partnerships in tech and science - www.startupeuropeindia.net

The UK's tech and life sciences sectors are making significant strides in the Indian market, with recent expansions amounting to tens of millions of pounds for the UK economy. This growth comes as the UK government relaunches talks on a trade deal with India, aiming to create more opportunities for UK businesses and boost economic growth.Economic Impact and Trade StatisticsIn the 12 months leading up to September 2024, UK businesses exported a total of £17 billion in goods and services to India. This figure underscores the importance of the Indian market for UK companies, especially considering India's projected rise to become the fourth largest importer by 2035.Key Sectors and CompaniesSeveral UK firms have successfully expanded their operations in India:Radio Design: This Shipley-based manufacturer of RF solutions for mobile networks, defense, and aerospace markets has established a manufacturing facility in India.Marcus Evans Group: The London-based event specialist has set up global tech operations in Mumbai.Appliansys: Based in Coventry, this tech company has partnered with Tata Motors to develop an internet-based education pilot for nearly 5,000 Indian schools.Microfresh: The Leicester-based chemicals company has implemented its smart antimicrobial technology across multiple Indian textile and leather players.Novocuris: This London-headquartered digital health tech business has begun operations in multiple Indian hospitals.Biocomposites: Based in Keele, the company is supplying Indian hospitals with medical devices for complex bone, joint, and musculoskeletal infections.Optibiotix Health: The York-based business has entered a long-term partnership with Morepen Laboratories to introduce its patented SlimBiome product to the Indian market.REM3DY Health: This Birmingham-based advanced manufacturing business has partnered with a leading Indian pharmacy giant to bring innovative gummy vitamin products to India.Practical Steps for UK Startups Entering the Indian MarketMarket Research: Conduct thorough research on the Indian market, focusing on your specific industry and potential competitors.Identify Local Partners: Look for reliable Indian partners or distributors who understand the local market dynamics.Understand Regulations: Familiarize yourself with Indian business regulations, tax laws, and import/export procedures.Adapt Products/Services: Tailor your offerings to meet the specific needs and preferences of Indian consumers.Leverage Government Support: Utilize resources and support provided by UK government agencies for international expansion.Attend Trade Shows: Participate in relevant trade shows and business events in India to network and showcase your products/services.Develop a Local Presence: Consider setting up a local office or manufacturing facility to better serve the Indian market.Protect Intellectual Property: Ensure your intellectual property is properly protected in India.Build Cultural Understanding: Invest time in understanding Indian business culture and etiquette to build strong relationships.Start Small and Scale: Begin with a pilot project or limited market entry, then scale up operations based on initial success and learnings.The success of these UK firms in India demonstrates the potential for growth and expansion in this rapidly developing market. As the UK government continues to work towards a trade deal with India, more opportunities are likely to arise for UK startups and established businesses alike. By following these practical steps and learning from the experiences of successful companies, UK firms can position themselves to capitalize on the vast potential of the Indian market.https://www.gov.uk/government/news/uk-firms-rake-in-tens-of-millions-in-expo