UK Firms Expand into Indian Market, Reaping Millions in Exports

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

As the EU and India work to finalize their landmark free trade agreement (FTA) by late 2025, startups and small businesses stand to gain unprecedented opportunities in cross-border innovation, sustainability, and market expansion. With negotiations entering their 10th round in March 2025, here’s how this partnership could reshape opportunities for agile businesses.Where the Negotiations StandThe EU and India revived FTA talks in 2021 after a 14-year hiatus, driven by mutual goals to counter geopolitical uncertainties and diversify supply chains. Bilateral trade hit $135 billion in 2022-23, with the EU as India’s largest trading partner in goods. Despite delays, both sides aim to finalize the deal by December 2025.Key Focus Areas:Reducing tariffs (e.g., India’s 100% duty on EU cars)Aligning sustainability standards (EU’s Carbon Border Tax vs. India’s growth needs)Expanding services trade, which doubled to €59.7 billion since 2020Sector-Specific Opportunities for Startups1. Green Energy and CleantechThe EU’s Green Deal and India’s 500 GW renewable energy target by 2030 create synergies for startups:Solar/Wind Partnerships: Collaborate on low-cost manufacturing of solar panels in India for EU markets.Hydrogen Innovation: Joint ventures in green hydrogen production and storage tech.Circular Economy: Opportunities in battery recycling (India’s EV market grew 154% in 2024) and plastic waste management.Example: A German startup partnered with an Indian firm to convert agricultural waste into biofuel, cutting emissions by 30%.2. Technology and AIThe EU-India Trade and Technology Council (TTC) is prioritizing:Semiconductor Ecosystems: A new MoU focuses on R&D, skill development, and supply chain resilience.6G and Cybersecurity: Pilot projects for IoT startups and secure network solutions.AI Governance: Tools for ethical AI development could gain traction in both markets.Example: A Bengaluru-based AI healthtech firm reduced diagnostic costs by 40% using EU-funded algorithms.3. Pharmaceuticals and HealthcareGeneric Drug Expansion: Simplified EU approvals for Indian pharma startups.API Transparency: Joint frameworks to track active pharmaceutical ingredients (APIs).MedTech Innovation: AI-driven diagnostics and telemedicine platforms targeting rural India.4. Agri-Tech and Food SecuritySmart Farming: EU precision agriculture tools + Indian agri-tech platforms = solutions for soil health and crop yields.Organic Certification: Mutual recognition could help Indian organic brands enter EU markets.While opportunities abound, startups must navigate:Regulatory Hurdles: GDPR vs. India’s data protection laws; differing sustainability certifications.Tip: Use the EU-India Digital Regulatory Dialogue for compliance guidance.Funding Gaps: Limited cross-border venture capital.Tip: Apply for grants like Horizon Europe (EU) or AIM-PRIME (India).IP Protection: Stricter EU patent laws vs. India’s generics-friendly policies.Tip: Leverage the FTA’s proposed dispute resolution mechanisms.Recent Progress: Von der Leyen’s 2025 VisitThe February 2025 EU-India summit accelerated momentum:Semiconductor Pact: A new agreement to co-develop chips and share technical expertise.Defense Collaboration: Startups in drones, cybersecurity, and aerospace may access joint R&D projects.Green Hydrogen Alliance: Targets 5 million tonnes of annual production by 2030.Actionable Steps for StartupsJoin Industry Coalitions: Engage with the EU-India TTC working groups on tech and sustainability.Localize Early: Set up lean teams in EU/India to understand cultural and regulatory nuances.Leverage Grants: Explore the €10B EU-India Connectivity Fund and India’s Startup India Seed Fund.Monitor Key Issues: Watch for final decisions on digital tax parity and e-commerce rules.The Bigger PictureThis FTA isn’t just about tariffs—it’s a gateway to a $300B+ economic corridor. For startups, success will depend on agility: adapting to green regulations, forging cross-border partnerships, and tapping into emerging sectors like carbon trading and ethical AI.As negotiations advance, businesses that align with the EU’s sustainability goals and India’s digital transformation agenda will lead this new era of collaboration.---Join the exclusive network for leaders driving growth and partnerships in tech and science - www.startupeuropeindia.net