Gaurav Singh, co-founder of JPIN VCATS, comments on the importance of this visit to both nations.
Today it was announced that Johnson’s state visit will go ahead from the 25th April but will be cut short due to the wave of new covid infections sweeping the country. The Prime Minister will meet his Indian counterpart to discuss growth and risk in the region, labelled ‘Roadmap 2030’, and what is on every business’s mind at the moment; a Free Trade Agreement with India. Despite wobbles in optimism due to the Pandemic, growth in the subcontinent is still forecasted at double digits, and the FTA is still estimated to be worth between $50 and $100 billion.
Last week, JP Morgan Chief Executive Jamie Dimmon said that because of Brexit, London will need to “adapt and reinvent itself” for the “business of tomorrow” to ensure it remains a global financial centre after Brexit. Many of these ‘businesses of tomorrow’ will be in emerging markets, and a Free Trade Agreement is the best way to ensure a symbiotic relationship between the UK and these economies.
India already has 1.3 billion people, as we know, and the sheer number of people is only matched as an incentive by the development milestones passed. India produces 25% of the worlds engineers, and by 2025, there will be 1 billion internet users according to Atlas VPN.
This is an example of India rapidly developing into a modern economic powerhouse, in terms of both production and consumption of basic goods as well as advanced, digital products. This is best illustrated by the FinTech ecosystem, which is the third biggest in the world – benefitting from technological developments and a rapidly growing and ever more accessible consumer base.
Gaurav Singh, co-founder of JPIN VCATS, comments on Johnson’s visit to India and what is at stake:
“The British PM’s visit is of vital importance to both nations due to the Free Trade Agreement being negotiated, and so assuming it can be done safely, it is great news to hear it is still going ahead – as although times of crisis bring extra concerns and safety measures, they also require more teamwork.
In times of potential crisis, international cooperation is incredibly important. It has often been said that it is a global approach that will be the way out of this Pandemic, and so the ability to communicate and discuss ideas is vital.
Out of all the gems in the East, the subcontinent shines the brightest for the British government, business leaders, and investors – and for good reason, and to ensure a continued symbiotic relationship, the FTA should be put down on paper as soon as possible. The Silk Road has been the world’s most important trade route for millennia, and all the forecasts point to it only becoming more important as emerging economies, particularly India, grow.”