UKIBC – Central News Hub

UKIBC Hails India’s Economy as Most Exciting

The UKIBC hailed the Modi government’s proposal to reduce the corporate tax rate on foreign companies from 40 to 35 per cent…reports Asian Lite News

Calling India the most exciting economic story in the world, The UK India Business Council on Wednesday congratulated Finance Minister Nirmala Sitharaman and the government for an emphasis on facilitating foreign investments and commitment towards fiscal stability in the Union Budget 2024-25.

The UKIBC hailed the Modi government’s proposal to reduce the corporate tax rate on foreign companies from 40 to 35 per cent and looks forward to continued progress towards parity.

“UKIBC welcomes the announcement on corporate tax reduction for foreign firms, which provides great encouragement to foreign investors. Continued progress towards a level playing field for all investors will help unlock higher levels of international investment in India,” said Richard McCallum, Group Chief Executive Officer, UK India Business Council (UKIBC).

The policy advocacy group said it is also encouraged to note the announcement on foreign direct investment (FDI) and look forward to the details once finalised and published.

“The Indian government has laid down an ambitious plan for ‘Viksit Bharat’ (Developed India) by 2047. The UKIBC and our members strongly support this agenda and can play a strong role across key priority areas such employment and skilling, energy transition, manufacturing, and R&D, among others,” the Council noted.

These are areas in which many UK companies are already invested and actively engaged in India, often working with brilliant Indian partners. A continued focus on policy and ease of doing business-related reform will help unlock increased private investment, including from the UK.

“We also commend the Indian government’s strong economic growth promotion while at the same time delivering fiscal stability and inflation management,” said the Council.

McCallum said, “India is the most exciting economic story in the world today. We see India not simply as a market but as a strategic partner — part of our R&D chain, technology chain, talent chain and supply chain.”

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McCole also said that the bilateral investment treaty between the two countries will help investments from the UK to India rise and vice-versa…reports Asian Lite News

UK-India Business Council (UKIBC), a trade body with a mission to grow trade and investments between the two countries, on Monday said the negotiations on the Free Trade Agreement (FTA) should conclude before the general elections due in both nations next year.

Thirteen rounds of negotiations have been already completed between India and the UK on the FTA.

“Because of the general elections in India and the UK going to polls next year, it is important that the negotiations for the proposed FTA are concluded early. Otherwise, there will be a pause in the negotiations while the general elections are on,” UKIBC Managing Director Kevin McCole said.

He said though the election date in the UK has not yet been fixed, the polls may be held between May and November next year.

There is a risk that negotiations may have to pause till the elections in India and the UK are over, he said.

McCole also said that the bilateral investment treaty between the two countries will help investments from the UK to India rise and vice-versa.

According to him, out of GBP62 billion invested globally by the UK in 2021, India only got GBP 2 billion.

“Once the bilateral investment treaty is signed, one could expect a larger share of the UK’s global investments in India”, he added. McCole said the UK is open to lower its tariffs on textiles from India.

“Presently, tariff on textiles from India is 12 per cent. Tariffs on textiles from Bangladesh and Sri Lanka are lower,” he said.

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