This week, the UK and India agreed on Britain’s largest international trade deal post-Brexit and while it comes with obvious benefits for purveyors of whisky and textiles, it can also be an opportunity for technology.
The agreement – which has been several years in the making – between Prime Minister Keir Starmer and Prime Minister Narendra Modi massively reduces tariffs on many British goods in India, one of the world’s largest markets that has historically been economically protectionist.
UK sellers of products including gin, cars, cosmetics and food will naturally enjoy more competitive access to the world’s most populous country but there are also positive steps for the tech industry.
“In a world where tariffs seem to be in fashion, lower levies for electrical machinery are a breath of fresh air,” commented Mark Boost, chief executive of cloud computing group Civo in a nod to the erratic economics of the Trump administration.
For Boost, further intertwining of the economies of the UK and India means more opportunities across sectors.
“When it comes to cloud computing and AI, India is home to some of the most innovative minds and enterprises in the field and has a well-established history of collaboration with UK businesses and researchers.”
An increase in the exchange of goods and services between the two countries also spells opportunity for fintech groups, which will be in great demand to facilitate cross-border payments.
“Unlocking the full value of this deal will require modern, reliable financial infrastructure, especially for cross-border payments, which are the lifeblood of international trade,” said Zaki Farooq, chief technology officer of PayFuture.
The deal also includes some direct support for the digital economy, specifically the “promoting of digital systems and paperless trade helping UK businesses of all sizes take the opportunities on offer in this huge and rapidly expanding market,” according to the Department for Business and Trade.
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