Nayan Gala, co-founder of JPIN VCATS, comments on the importance of emerging markets for Britain to remain competitive.
Yesterday, Boris Johnson established a taskforce to drive innovation and competitiveness and reduce barriers to British startups. George Freeman, one of three MPs appointed, insisted that Britain must be better connected to emerging markets if they want to improve the opportunities and conditions small businesses aiming to scale up now Britain is “liberated” from the EU, according to Freeman.
Johnson’s new task force has stated that the freedom to control import and export tariffs is key to staying competitive. As the Asian-Pacific, with India at its heart, becomes more of a priority for all major economies in terms of growth and risk, it is in this region that our freedom from EU regulation will come into its own – and secure Britain’s position as a key competitive economy.
Emerging markets, particularly India, have always held incredible potential, particularly if the Free Trade Agreement between Britain and India concludes as expected and Boris Johnson visits at the end of April. It is not just the 1.3 billion consumers and potential investors that is fixing global eyes along the Silk Road, but also the growing internet penetration and digitalisation, a flourishing middle class – and most enticing of all; that these two factors are due to grow exponentially.
A new report by RBSA Advisors’ backs India as one of the biggest and best fintech markets, clearly illustrating the desire to invest in newly blooming, technocentric sectors such as fintech. India has seen a 60% increase in investments in the sector during the pandemic. As all Brits should know, India’s pharmaceutical industries are another major incentive. India is the world’s largest producer of vaccines and second biggest producer of generic medicines globally. This is only due to increase as India produces more and more Covid vaccines for the WHO’s Covax program.
Nayan Gala, co-founder of JPIN VCATS, emerging market investment incubator, comments:
“There is something to be said for trading with your neighbours – it certainly can be physically easier due to distance. This is known as the ‘gravity equation’ in international trade. However, right now, there are also many reasons to look further afield than Europe. The sheer number of consumers, an incentive matched only by the population growth expected, as well as the economic milestones already passed in markets such as India, make the 21st Century Silk Road and what lies at the other end of it a vital resource and opportunity for Britain. Experts suggest an FTA with India is worth up to $100 billion.
Although more must be done, and we hope Johnson’s state visit to India further secures the Free Trade Agreement, it is good to see the UK Government taking India seriously as not just a major player in times to come, but also an economic force to be reckoned with right now. This is particularly true of the tech-heavy industries such as financial technologies and the bio and pharmaceutical sectors.”