London, Oct 20 (PTI) Several UK businesses see the Free Trade Agreement (FTA) with India as a "game-changer" as they accelerate expansion plans and a majority of firms without a presence move to enter the market, according to a new report.

According to Grant Thornton's latest ‘International Business Report’ (IBR) analysis from last week, 72 per cent of UK firms now identify India as a key market for international growth, up from 61 per cent last year, signalling India's "shift to the centre of global strategy conversations".

The India-UK Comprehensive Economic and Trade Agreement (CETA), signed during Prime Minister Narendra Modi’s UK visit in July, is expected to significantly enhance the 44.1-billion-pound bilateral trading partnership once it is ratified by the British Parliament in the coming months.

The IBR report found that while only 28 per cent of businesses surveyed currently operate in India, 73 per cent of those without a current presence plan to enter the market, including 13 per cent within the next 12 months.

“The shift we're seeing is clear: UK mid-market businesses are no longer asking ‘why India’, they are asking ‘how soon’,” said Anuj Chande, Partner and Head of South Asia Business Group, Grant Thornton UK.

“With 73 per cent of firms planning to establish operations in India and over half of existing players looking to scale up within a year, this is a pivotal moment. The UK-India FTA is a game-changer, reducing entry barriers and accelerating opportunity,” he said.

The analysis finds that India’s appeal for UK businesses is driven by a combination of scale, talent, and economic momentum, with 65 per cent of British firms citing India’s fast-growing economy and 60 per cent pointing to its vast consumer market as key reasons for the prioritisation.

As many as 79 per cent of surveyed UK businesses agreed that FTAs effectively encourage investment and promote growth, with the India-UK CETA expected to simplify business setup, reduce operating costs, and enable smoother mobility of talent across borders.

These benefits are seen as especially relevant for industries such as IT, finance, and consulting, with the trade deal set to also enhance collaboration in innovation, sustainability and digital governance.

The multinational professional advisory firm highlighted the Prime Minister Keir Starmer led trade delegation to Mumbai earlier this month as an important step towards decoding the complexities of operating in a dynamic market such as India.

“Success will come to businesses that combine ambition with local insight, adaptability, and a commitment to long-term partnerships. The recent UK business trade delegation that accompanied the Prime Minister's visit will no doubt add to the impetus to trade and invest with India,” added Chande.

Access to skilled talent is highlighted as another major draw for UK businesses, with 53 per cent pointing to India's large, qualified workforce — particularly relevant for sectors such as tech, consulting, and professional services.

According to Grant Thornton's annual ‘Britain Meets India’ report, 667 British firms are already operating in India, generating 47.5 billion pounds in revenue and employing more than 516,000 people.

While the opportunities in India are clear, businesses also expressed awareness of the challenges, with 63 per cent of UK firms citing regulation and foreign exchange controls as their top barriers, with 38 per cent highlighting infrastructure gaps and India’s fragmented market.

The momentum is mirrored by Indian firms, with 99 per cent of those with a UK presence planning to expand and nearly 90 per cent of those not yet in the UK intending to establish a base. PTI AK ZH ZH

Free Trade Agreement drives UK firms to accelerate India market entry and scale operations following enhanced trade access. UK businesses view the India-UK Comprehensive Economic and Trade Agreement (CETA) as reducing entry barriers and lowering operating costs, prompting a majority of firms without a current Indian presence to plan market entry and many existing operators to scale up. The shift is driven by India's large consumer market, rapid economic growth, and talent pool, while persistent challenges include regulatory complexity, foreign exchange controls, infrastructure gaps, and market fragmentation.