New banking data shows ‘huge’ leap within India’s business corridors

London, Dec 17 (PTI) Business activity between the UK and India boomed in 2024, with UK customers receiving a 121% increase in payments from India, according to the latest data released by HSBC UK.

The multinational bank this week highlighted data based on its two-way support for businesses within the India-UK corridor and said its payments and customer referral data showed year-on-year growth.

According to reports, payments made by HSBC UK business customers to India increased by 32% in the nine months to October 2024, and the bank received 36% year-on-year new business customer referrals from HSBC India.

“Our data shows that business between the UK and India is not only strong, but getting stronger, and there are huge opportunities to expand in India,” Cora McLaren, head of international subsidiary banking at HSBC UK McLaren) said.

“The Indian population not only has a large number of potential customers, but also a growing middle class within it, creating opportunities for UK businesses to sell high-quality products and services. In addition, India is increasingly seen as globally capable due to its language and technological proficiency The hub of the center – where multinational companies run multiple strategic functions,” she said.

The bank executive described the relationship as a two-way one as Indian companies increasingly operate in the UK, “particularly in the pharmaceutical industry where India is a global leader”.

“HSBC’s relationship with India goes back more than 100 years. We are very proud to help ambitious British businesses expand there and equally welcome Indian companies to set up operations on these shores,” she added.

The data comes as the two governments prepare to resume free trade agreement (FTA) talks next year, after Prime Minister Keir Starmer and Narendra Modi agreed last month Negotiations for a free trade agreement (FTA) were relaunched at a meeting held on the sidelines of the G20 summit in Brazil.

Richard McCallum, group chief executive of the UK India Business Council (UKIBC), said: “We very much welcome the renewed commitments made by both Prime Ministers at the G20 meeting and the resumption of free trade in early 2025. Agreement Negotiation Intent.”

“As HSBC data shows, UK trade with India is growing rapidly. This growth will only accelerate further when a free trade agreement is implemented… In UKIBC’s view, continued business reforms and geopolitical factors make India a An attractive destination for investment, a source of capital for goods and services, and a strategic supply chain partner for UK businesses across industries,” he said.

According to official statistics from the UK Department of Business and Trade (DBT), trade in goods and services between the UK and India totaled £42 billion in the four quarters to the end of 2024. This number is expected to rise significantly with the signing of the free trade agreement. Negotiations began in January 2022 but were suspended during the 14th round earlier this year due to the general elections in both countries. Talks are scheduled to resume in the New Year, with a specific timetable yet to be formally confirmed.