Essay About Uk-India And Major Businesses

India-Uk Trade
INDIA-UK TRADEINTRODUCTION:The relationship between UK-INDIA is strong with a shared history going back in centuries and with a shared vision in future too. There has been a renewed energy in collaborations and growth in investment in both the countries for many years.In terms of number of projects, India is the third largest source of Foreign Direct Investment to UK after the US and France. In the same way, UK is also the third largest inward investor in India after Mauritius and Singapore.There are more than 800 major businesses operating in UK and as of 2014, these companies have generated over 19bilion pounds.Key Drivers of Investment:Being India one of the fastest growing economies in the world, the exports from UK is over 8billion pounds with goods worth 6.35billion pounds and services worth 2.24billion pounds.India is made up of 29 states and 7 union territories creating a wide market with different regions. The key benefits for UK trading in India areEnglish is widely spoken as it is one of the official languages of India.A common administrative and legal history.Income growth in middle class consumer marketOne of the largest youth population in world with fast growing economyEmerging major cities over a million people in each city.Availability of low cost labor work force.Large number of financial and business institutions and organized capital market.Potential Risks of doing business in India:India is a large market for business which might lead to few challenges. India is a price competitive market. So there is always a negotiation on price for the products. It has 7 major religions and many minor religions. Due to this there are many public holidays which change depending on the year. The major challenges includeLarge number of multiple religions leading to ethnic and variations in holiday timings every year.Due to regulatory constraints there might be barriers for trade and investment.Intellectual property protection (IP) which includes patents, trademark, copyrights and industrial designs.Risks of corruption and bribery are considered for doing business in India.Instability in political governanceLack of fiscal discipline and inflationLocal sourcing requirements and tariff imports.infrastructure challenges, including for distribution and logisticsrisk of bribery and corruptionINDIA-UK TRADE:The total bilateral trade in goods and services between UK and India was 16.33billion pounds in 2015. The major items of trade in goods areUK Export: Machinery for power generating and equipment, petroleum oils, electrical machinery, appliances, chemical materials and products, beverages, engines and motor, medicaments, bituminous minerals and data processing machine.UK Import: Articles of apparel, footwear, medical and pharmaceutical products, fabrics, motor vehicles, petroleum related materials, textile yarn, made up articles, metal manufacturers and clothing accessories.